- Have any questions?
- 02 9247 6000
- media@commsroom.co
- Have any questions?
- 02 9247 6000
- media@commsroom.co
Menu
Elon Musk has struck a deal to acquire Twitter for $44 billion ($A61 billion) in a transaction that will shift control of the social network populated by millions of users and global leaders to the world’s richest man.
The deal wraps up nearly a month of speculations and Twitter feuds, beginning with Musk becoming one of Twitter’s largest shareholders and then rejecting a seat on its board.
Related: Elon Musk tweets Elvis tune as Twitter adopts ‘poison pill’
This marks a seminal moment for the 16-year-old company that emerged as one of the world’s most influential public squares and now faces a string of challenges.
Discussions over the deal, which last week appeared uncertain, accelerated over the weekend after Musk revealed the financing details of his offer to Twitter’s board. This would become a major turning point for shareholders to consider the offer.
Under pressure, Twitter started negotiating with the Tesla and SpaceX CEO to buy the company at the proposed $54.20 per share price.
“Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated,” Musk said in a statement.
“Twitter has tremendous potential — I look forward to working with the company and the community of users to unlock it,” he said.
Shares were up about six per cent following news of the deal on Monday. It represents a 38 per cent premium to the closing price the day before Musk disclosed he had bought a more than nine per cent stake. Even so, the offer is below the $70 range where Twitter was trading last year.
The transaction was approved by the board and is now subject to a shareholder vote.
It was not immediately clear what the breakup fee would be or who would run the new company.
Twitter’s outsized importance as a mouthpiece for politicians, political dissidents and activists belies its relatively small size.
Although it is only about a tenth of the size of far larger social media platforms like Meta Platforms Inc’s Facebook, it has been credited with helping spawn the Arab Spring uprising and accused of playing a role in the January 6, 2021, storming of the US Capitol.
After Twitter banned former president Donald Trump over concerns around incitement of violence following last year’s US Capitol attack by his supporters, Musk tweeted: “A lot of people are going to be super unhappy with West Coast high tech as the de facto arbiter of free speech.”
Republicans on Monday cheered the news of a possible Musk buyout of Twitter, betting on Trump’s reinstatement on the service.
Trump, whose company is building a rival to Twitter called Truth Social, said he will not return to Twitter, according to a Fox News interview.
with news from AAP
Zoe is a content creator, specialising in speech and corporate communications. She is currently the content producer of Supply Chain Channel— a learning ecosystem dedicated to connecting and empowering the Australian supply chain community.
