Twitter’s board finally approves Elon Musk’s $44 Billion deal
On Tuesday, Twitter’s board of directors unanimously recommended their shareholders to vote in favour of Elon Musk’s $44 Billion offer.
According to the latest SEC filing, Twitter board members unanimously “determined that the merger agreement is advisable and the merger and the other transactions contemplated by the merger agreement are fair to, advisable and in the best interests of Twitter and its stockholders”.
According to the deal, each Twitter investor will receive $54.20 for each share they own in the company. To pay the $44 Billion, Elon Musk has secured around $25.5 Billion from a group of banks led by Morgan Stanley. This funding also includes $12.5 Billion of margin loan against Musk’s Tesla shares but it was later reduced to $6.25 Billion.
Musk has secured another $7 Billion from a group of investors which includes Oracle co-founder Larry Ellison, Sequoia Capital and Saudi Arabian investor Prince Alwaleed bin Talal. And the rest of the required billions for the purchase are coming from Musk’s own pocket.
At first Twitter disagreed with Musk’s offer and adopted a “poison pill” strategy to stop Musk’s hostile takeover. Later Twitter agreed to sell itself but the deal was on hold for sometime because Musk wanted more data on spam counts and even threatened to walk away from the deal if data not provided.
Few days ago Twitter finally agreed to grant Musk access to their “Firehose” API which contains real time data of almost 500 million tweets posted every day. Couple of days ago Elon Musk addressed Twitter employees for the first time in a virtual meeting where he talked about job cuts, work from home arrangements and his vision for Twitter.
Talking about the reason behind his Twitter purchase during a TED interview, Elon Musk said “I’m saying is this is not a way to make money. It’s just that my strong, intuitive sense is that having a public platform that is maximally trusted and broadly inclusive is extremely important to the future of civilization”.