Twitter Accepts Elon Musk's $ 44 Billion Agreement

After rejecting Elon Musk's initial dismissal, the Twitter board on Monday said it would take Musk's $ 44 billion offer to the company, ending a week-long saga on whether the company would accept his unsolicited request.

"The Twitter board has developed a thoughtful and comprehensive process to evaluate Elon's proposal by deliberately focusing on price, assurance, and finances," Twitter chairman Bret Taylor said in a statement.

Musk first proposed a $ 54.20-a-share transaction on April 14, which lasted for several weeks as Twitter and Wall Street leaders rushed to find out if Musk was critical or not. As it turns out, he too: Musk elaborated on the finances of the bid last week, about $ 46 billion from equity and the debt covered by Morgan Stanley.

Twitter first removed Musk, using a toxic pill intended to make any attempt to take it more expensive. But it is reported that Twitter has been under additional pressure from major shareholders to fully consider Musk's request. The company's stock has dwindled in recent months, having lost about 60% of its value in the 12 months leading up to Musk's disclosure in early April that he had invested heavily in Twitter shares.

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"Freedom of speech is the foundation of a functioning democracy, and Twitter is a city forum where important issues for the future of humanity are discussed," Musk said in a statement. Twitter has great potential - I look forward to working with the company and the user community to unlock it. . "

Twitter shares rose 5.5% to $ 51.63 on Monday as investors chanted the board's decision. With the gap between the stock price and Musk's offer remaining, investors still believe there may be a breach of contract, a company expected to close later this year.

From start to finish, Musk's take-off bid took less than a month, a surprisingly fast pace. On April 4, he revealed that he had built up 9.2% in the company in recent weeks, making him the future Twitter player. The following week, Twitter offered him a board chair; he agreed and refused.

He followed it up with his $ 54.20 budget proposal a week later, though he did not specify how he would pay for it, which is often an important point for hostile bids. By accepting the toxic pill, the Twitter board bought itself some time to explore Musk's intentions, complete its company rating and possibly look around to find other beneficiaries, who the White knight buyer would find more suitable than Musk.

"It all came down to some budding buyers or white knights on the M&A system and the Twitter Board came back to the wall when Musk unveiled his $ 46 billion last week to write down the deal," said Wedbush analyst Dan Ives.

Musk said the forum needed to change dramatically, and focus on free speech that was not tested. Twitter has been enjoying greater cultural preservation than business success, and stocks have spent years sickening before the epidemic and renewed focus on growth was partially dominated. But even though the stock reached nearly $ 80 last year, it lost more than half of its value in the past few months, at least partly as a result of concerns over the strength of Twitter mobile ads during changes to Apple's software.

Twitter will report on its first-quarter profits on Thursday morning, providing the latest details on company life and that Musk recently spent $ 44 billion.

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