Twitter has agreed to sell the company to Elon Musk for $44 billion.

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Twitter
Binance has committed $500 million to finance Elon Musk's takeover of Twitter.

Twitter has reached an agreement to sell itself to Elon Musk, the world’s richest man, for $44 billion.

It is the largest social media acquisition, surpassing Microsoft’s $26.2 billion purchase of Linkedin.

Mr Musk made an unsolicited bid for the massive social media company, offering to buy its shares for $54.20 per unit — a reasonable price compared to the $40+ it has been selling for.

After initially rejecting the offer, Twitter made it clear on Monday that it was seriously considering it and that both parties were close to a deal.

Mr Musk announced in a statement Monday evening that Twitter Inc. had entered into a definitive agreement to be acquired by an entity wholly owned by Mr Musk for $54.20 per share in cash in a transaction valued at approximately $44 billion. Twitter will become a privately held company after the transaction is completed.

Twitter stockholders will receive $54.20 in cash for each share of Twitter common stock they own upon the completion of the proposed transaction, according to the terms of the agreement. The purchase price is a 38% premium to Twitter’s closing stock price on April 1, 2022, the last trading day before Mr. Musk disclosed his approximately 9% stake in the company.

“The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing,” said Bret Taylor, Twitter’s Independent Board Chair. The proposed transaction will result in a significant cash premium, and we believe it is the best way forward for Twitter stockholders.”

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Twitter CEO Parag Agrawal stated, “Twitter has a purpose and relevance that impacts the entire world.” We are extremely proud of our teams, and we are inspired by the work that has never been more important.”

“Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where issues critical to humanity’s future are debated,” Mr. Musk said. “I also want to make Twitter better than ever by adding new features, opening up the algorithms to increase trust, defeating spam bots, and authenticating all humans.” Twitter has enormous potential, and I am excited to work with the company and the user community to realize it.”

Terms of Transaction and Financing
The transaction, which has been unanimously approved by the Twitter Board of Directors, is expected to close in 2022, subject to Twitter stockholder approval, receipt of applicable regulatory approvals, and fulfillment of other customary closing conditions.

Mr. Musk has secured $25.5 billion in fully committed debt and margin loan financing, as well as an equity commitment of approximately $21.0 billion. There are no financing requirements for the transaction to close.

Twitter intends to release its fiscal year 2022 first-quarter results before the market opens on April 28, 2022. Twitter has announced that it will not hold a corresponding conference call in light of the pending transaction announced today.