Elon Musk set to fully acquire Twitter for $43 billion
Twitter is about to accept Elon Musk's 'best and final' offer and sell itself to the world's richest man, according to Reuters that cites people familiar with the matter. Musk had offered to buy the micro-blogging platform for $54.2 per share and Twitter may soon announce the $43 billion takeover in the coming hours after its board gets the customary nod from other shareholders.
The Twitter-Musk deal is almost done but there is a possibility that the deal may collapse at the last minute. During such hostile acquisitions, companies sign the agreement but look for bids from other potential acquirers as well. However, Musk has not yet agreed to any such provision. Twitter would have to pay Musk break-up fee if it accepts a bid from another buyer.
As per the filing submitted by Musk to the US Securities and Exchange Commission last week, he had secured $46.5 billion in financing. The total amount reportedly includes $25.5 billion in debt from Morgan Stanley and $21 billion in equity financing, which also includes $10-$15 billion of his own money. However, the finer details will likely be revealed when Twitter reports earnings on Thursday.
Musk wants to project Twitter as a platform for free speech. Earlier this month he said: "I invested in Twitter as I believe in its potential to be the platform for free speech...I believe free speech is a societal imperative for a functioning democracy." Musk will also bring changes related to profile verification and plans to cut the board of directors' salary to $0.