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| Elon Musk | Photo Credit: Getty images |
The entire tech industry has been buzzed out with the news of Elon Musk’s bid to buy twitter for well over a week. On April 25th, 2022, history was made as the $264 billion-dollar man, acquired twitter.
Twitter officially announced on monday, that it has considered Musk’s buyout plan for the social media company. It is a $54.20 per share negotiation from Musk to twitter. This individual share price, is actually 38% higher than the price-per-share value at the close of stock trading just before the announcement of the deal. Elon Musk initially said he had secured $21 billion in cash, with a further $25.5 billion dollars, in margin loan funding, from multiple financial organisations (of which he used Tesla stocks as collateral).
This unprecedented move will redefine the status of Twitter as a privately held company, meaning that it will no longer have its shares traded in the stock exchange market. Information reaching StarklyTech, says the total worth of the deal hovers at $44 billion.
Elon Musk narrated in a twitter post highlighting his ambitions for the company:
“Twitter has tremendous potential”, “I want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans.”
Jack Dorsey, co-founder and former CEO of Twitter, also a member of Twitter’s board, has expressed his confidence in Musk’s future leadership of the San Francisco headquartered company. Dorsey is acclaimed to be worth an estimated $7 billion.
In more detail of the events that led to this final tradeoff, Twitter earlier disclosed it’s public business records, and it shows that the social giant has not returned a profit for the past 10 years, although Twitter made a revenue of $5 billion in 2021. Financial constraints which the company has faced in recent times, might have been a motivating factor in this company sale.
The business deal will undergo government scrutiny, and could take many months before completion, while fortunately for Elon Musk, he will become the undisputed owner of Twitter, if the deal goes as fully planned.