Once the deal is finalized, Elon plans to take it private.
Taken from Bloomberg … Elon Musk agreed to buy Twitter Inc. for $44 billion, ending weeks of speculation after he took a stake in the social media platform this month.
The announcement Monday confirmed many of the details that had already been reported — or tweeted — about the transaction. It also left many unanswered questions. Here’s what we know so far, what still needs to be clarified, and what might happen next.
What we know
The Price: Musk said in his original bid for Twitter that he wouldn’t budge from the price of $54.20 per share. He stuck to that promise, announcing the all-cash deal for exactly that amount. Though his initial filing valued the offer at $43 billion based on the company’s outstanding stock, Monday’s confirmation bumped that figure to $44 billion. That’s likely a quirk of the numbers of shares being counted, rather than any adjustment to the price.
The Financing (part one): This is a giant leveraged buyout. As Musk revealed last week, he’s raised $25.5 billion of fully committed debt and margin loan financing from a dozen banks to back the bid. When the deal is completed, Twitter will become a privately held company.
Source: Bloomberg
