Elon Musk won a deal to buy Twitter on Monday for $ 44 billion in an agreement that will transform the platform’s control of social media used by millions and global leaders in the richest person in the world.
Discussions over the deal, which seemed uncertain last week, flared up over the weekend after Musk flirted with Twitter shareholders about 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 number of challenges.
Under pressure, Twitter began negotiating with Musk to buy the company at a suggested price of $ 54.20 per share.
The deal has ended Twitter’s career as a public company since its initial public offering in 2013, which is after nearly 9 years of trading.
Twitter shares were up about 6%, in following news of the deal, while Tesla’s shares fell after Musk’s deal to buy Twitter.
Musk said Twitter had to be private to become a true platform for freedom of expression.
The deal comes just four days after Musk unveiled a financing package to support the acquisition. This led to Twitter’s board of directors taking the deal more seriously and led many shareholders to ask the company not to pass up the opportunity, Reuters reported 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 being on track to meet the ambitious financial targets set for 2023. of Twitter traded higher than Musk’s offer price in November.
Musk’s negotiating tactics – making an offer and sticking to it – were similar to those of veteran billionaire Warren Buffett, when negotiating acquisitions.
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