Elon Musk owns Twitter – Bankier.pl

100 percent acquisition. Twitter shares are set to be taken over by the world’s richest man after the company’s other shareholders approved the Tesla chief’s offer.

The April saga continues with Elon Musk’s Twitter post. When the world’s richest man was announced at the beginning of the monthIt has become the largest contributor to a popular communications platform,
No one thought that he would soon become the sole owner of it. In mid-April, Musk announced that he had made an offer To buy all Twitter shares at 18 percent. Premium compared to the previous day’s closeand in cash.

It soon became clear that it would not be so simple. On the one hand, everyone was wondering where Musk had a lot of cash (his valuation is based mainly on the market price of Tesla shares), on the other hand, there were objections from other shareholders.

“I don’t think Elon Musk’s proposed offer ($54.20 per share) comes close to the value of Twitter given its growth prospects,” Saudi Prince Alwaleed bin Talal, one of the company’s shareholders, wrote on April 14.

Reuters reported on Monday evening that the deal amounted to 44 billion dollars. It is set to be one of the largest bank loan-backed acquisitions in history. As it turned out earlier, Elon Musk owns only part of the funds to take over the company, and the rest comes from the loan given in exchange for Tesla shares. According to the Financial Times, the Tesla boss was supposed to give $21 billion.

Before the US trading session closed, Elon Musk tweeted his message regarding the platform. “Freedom of expression is the cornerstone of democracy, and Twitter is a digital arena where issues important to humanity are discussed.” The platform is to be better and better, among other things through new functionality or blocking content sent by bots. “Twitter has tremendous potential. I look forward to working with the company and the user community to unblock it,” Musk concluded.

♥️ Yes!!! ♥ ️💫🚀 pic.twitter.com/0T9HzUHuh6

– Elon Musk 25 April 2022

Twitter shares grew during Monday’s session by about 4 percent. before confirming the transaction. After the deal was announced, the price increased by 6%. Since the beginning of the year, it’s been up about 20 percent.

Twitter extends gains, with shares up 6% after Elon Musk buys the company https://t.co/Rrmm5VrVJL pic.twitter.com/VB6N9ANzVA

– Bloomberg (business) 25 April 2022

Musk has met with Twitter contributors over the past few days, seeking endorsement for his offer. He said a private company needed to acquire Twitter in order to grow and become a true platform for freedom of expression, Reuters reported.

In addition, two groups of interests clashed. The sources said that long-term shareholders, who together with ETFs own the largest portion of Twitter’s stock, have higher price expectations, some in the $60 per share range. Reuters reported that they are also likely to give Paraj Agrawal, who became the company’s CEO in November, more time to raise the value of the company’s shares.

On the other hand, short-term investors, such as hedge funds, wanted Twitter to accept Musk’s offer. Some feared that the recent slump in tech stocks amid concerns about inflation and deflation has made Twitter unlikely to be able to secure more value any time soon.

Before confirming the deal, Musk tweeted Monday that Hope will remain on the podium of his biggest critics, a true affirmation of free speech.

I hope even my worst critic remains on Twitter, because that’s what freedom of speech is

– Elon Musk 25 April 2022

South African-born Elon Musk, who often laments a lack of cash, has a net worth of more than $260 billion on paper, according to Forbes. This includes his stake in Tesla and SpaceX. Now his portfolio will also include Twitter Thus, Musk will join the ranks of media tycoons.

MK

source: