Tesla CEO Elon Musk on Monday reached an agreement to buy with social media firm Twitter for roughly $44 billion.
Twitter investors will get $54.20 in cash for each share of Twitter common stock they possess when the proposed deal closes, according to the terms of the agreement.
“The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing. The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders,” Bret Taylor, Twitter’s Independent Board Chair, said.
Parag Agrawal, Twitter’s CEO, said, “Twitter has a purpose and relevance that impacts the entire world. Deeply proud of our teams and inspired by the work that has never been more important.”
Mr. Musk said: “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.”
“I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans. Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it.”
Tesla CEO Elon Musk, who is also the world’s wealthiest person, has stated earlier that he wants to acquire and privatise Twitter because he believes it is not living up to its promise as a free speech platform.
Political activists predict that under a Musk administration, there will be less moderation and the return of prohibited persons such as former President Donald Trump.
Conservatives applauded the idea of less restrictions, while human rights groups expressed concerns about an increase in hate speech.
Musk has outlined a number of user-friendly changes to the service, including the addition of an edit button and the defeating of “spam bots” that send out a large number of unwanted tweets.
While Twitter’s user base of more than 200 million people is far lower than that of competitors such as Facebook and TikTok, celebrities, global leaders, journalists, and intellectuals use the service.
Musk is a frequent tweeter, with a following that matches that of numerous pop stars.
In a recent TED interview, Musk said he’d like to see Twitter err on the side of allowing speech instead of moderating it. He added he’d be would be wary of permanent bans in general. He also acknowledged that Twitter would have to abide by national laws governing speech in markets around the world.
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