Twitter, Inc. (NYSE : TWTR), entered into a definitive deal to be purchased by Elon Musk’s entity for $54.20 per share. This transaction is estimated at $44 billion.
Twitter will be a privately-held company upon completion of the transaction.
Under the terms of the agreement, Twitter stockholders will receive $54.20 in cash for each share of Twitter common stock that they own upon closing of the proposed transaction. The purchase price represents a 38% premium to Twitter’s closing stock price on April 1, 2022, which was the last trading day before Mr. Musk disclosed his approximately 9% stake in Twitter.
The Twitter Board of Directors unanimously approved the transaction. It is expected that the transaction will close in 2022. However, it must be approved by Twitter stockholders, receive applicable regulatory approvals, and satisfy other customary closing conditions.
Mr. Musk has $25.5 billion in fully committed debt and margin loans financing, and has made an estimated $21.0 billion equity commitment. The transaction is final without financing conditions.