Social media service Twitter has accepted Elon Musk's offer to purchase the company for $44 billion. Musk, who is the world's richest individual, already owns a 9.2% stake in the company. Not satisfied with being Twitter's largest shareholder, Tesla's CEO offered to buy the social media giant in its entirety at $54.20 per share. While the deal was mired in skepticism and doubt, Twitter began negotiations surrounding the deal.
Twitter accepted Musk's offer on April 25 and the deal is set to close sometime this year - pending shareholder approval. In a statement announcing the deal, the 50-year-old remarked "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."
The SpaceX founder took to his favorite social media platform, writing that "Twitter has tremendous potential" and that he "looks forward to working with the company and the community of users to unlock it."
Reports suggest that the company's Board of Directors was firmly against the idea when Musk first proposed an offer earlier this month. Twitter went so far as to put protective measures in place for fear of a hostile takeover.
That all changed when Musk proved he had secured funding. After sourcing a $25.5 billion loan in the form of commitment from Morgan Stanley Senior Funding, the board started to waver. An additional $21 billion would come from Musk's vast wealth reserves. In a statement, the social media platform's Independent Board Chair said Twitter's board believed that the deal is "the best path forward for Twitter's stockholders."
Musk's fondness for the social media app is well-documented. In fact, various postings have previously landed him in hot water with the SEC. Naturally, the outspoken billionaire has amassed myriad detractors on his incredible business journey - some may think owning Twitter would be the ideal way for Musk to silence the naysayers. He hopes for the opposite to happen.
He tweeted, "I hope that even my worst critics remain on Twitter because that is what free speech means." His intention to transform the social network into a paragon of free speech is admirable, but we should wait and see what happens. After all, Musk has a reputation for making lofty claims and struggling to follow through. We've already seen what happens when the South African-born billionaire puts his might behind Tesla's cars - the Model S Plaid is proof of that. Let's see what he does with Twitter.