Billionaire Elon Musk on April 25 has reached a deal with the board of Twitter to buy the social media platform for $44 billion.
Twitter announced that its board agreed to the takeover deal at $54.20 per share in cash after Musk made the offer less than two weeks ago.
The social media company initially rebuffed the bid, but it will now ask shareholders to vote to approve the deal after Musk announced in a Securities and Exchange Commission filing that he has secured funds to help finance the deal.
“The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing,” Twitter’s Independent Board Chair Bret Taylor said.
“The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders,” Taylor further said.
Musk has indicated that he is primarily interested on what he views as Twitter’s censorship on free speech.
Twitter has faced growing pressure from politicians and regulators over the content that appears on its platform, including the spread of misinformation.
Under the deal, Twitter will become a private company and all its shares will be delisted, giving Musk the freedom to make the changes he wants to the company.
In his offer document, Musk told Twitter’s board, “I don’t have confidence in management.”
It is not clear who will lead the new company.
Parag Agrawal currently leads Twitter after he took over from co-founder and former boss Jack Dorsey last November.
The takeover is expected to close later this year.
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