Elon Musk won on Monday Agreement to buy Twitter for $44 billion In a deal that will turn control of the social media platform used by millions and global leaders into the world’s richest person.
Discussions over the deal, which last week appeared uncertain, heated up over the weekend following Musk flirted with Twitter shareholders regarding the financial details of his offer.
This is a defining moment for the 16-year-old company that has emerged as one of the most influential forums in the world and is now facing a series of challenges.
Under pressure, Twitter began negotiating with Musk to buy the company at a suggested price of $54.20 per share.
The agreement ends Twitter’s career as a public company since its initial public offering in 2013, that is, following nearly 9 years of trading.
Twitter shares rose regarding 6%, following the news of the agreement, while Tesla’s shares fell following Musk’s deal to buy Twitter.
Musk argued that Twitter needed to be private in order to grow into a true platform for freedom of expression.
The deal comes just four days following Musk unveiled a financing package to support the acquisition. This led Twitter’s board of directors to take the deal more seriously, and led many shareholders to ask the company not to let the opportunity slip, Archyde.com reported on Sunday.
The sale represents Twitter’s acknowledgment that its new CEO Parag Agrawal, who took over in November, is not generating enough momentum in making the company more profitable, despite it being on track to meet the ambitious financial goals it set for 2023. Twitter shares have been traded Higher than the price of Musk’s offer in November.
Musk’s negotiating tactics – making one offer and sticking to it – were similar to that of veteran billionaire Warren Buffett, in negotiating acquisitions.
