Jason Ryan, Staff
Shortly after becoming a majority shareholder with a 9.2 percent stake in the social media platform, Elon Musk has bought Twitter for $44 billion. Source: NPR
On Monday, Elon Musk, CEO of Tesla, Inc. and founder of SpaceX, purchased social media platform Twitter for $44 billion. Musk, the outspoken CEO, and the richest man on Earth, according to Forbes, plans to take the social media company private, and has said that he wishes for Twitter to adhere more closely to the principles of free speech, which, in a statement, Musk called, “the bedrock of a functioning democracy.”
This deal caps off a hasty episode in which the billionaire became one of Twitter’s largest shareholders, buying a 9.2 percent stake of the company. Afterwards, Musk was offered and turned down a seat on its board and decided to bid to buy the entire company all in less than a month.
Under the terms of the deal, shareholders will receive $54.20 in cash for each share of Twitter stock they own, matching Musk’s original offer and marking a 38 percent premium over the stock price the day before Musk revealed his stake in the company.
The offer became more concrete once Musk announced in a Securities and Exchange Commission filing that he received commitments for $46.5 billion to help finance the potential deal. This included about $25.5 billion in debt financing from Morgan Stanley Senior Funding and other firms. He said he committed about $21 billion in equity financing.
Though Musk has indicated that his primary interest in Twitter has to do with what he views as the company’s censorship of free speech, Musk’s critics are concerned that the billionaire’s control over the platform could result in the silencing of their voices and others with whom he may disagree, given that he’s often blocked critics from his personal account.It is too premature to say what Musk is to do with Twitter, but it is obvious he clearly intends to make his presence felt and heard around the social media platform. Musk has repeatedly stressed in recent days that his goal is to bolster free speech on the platform and work to “unlock” Twitter’s “extraordinary potential.” We will be following this story in the coming week if there are any major updates.