{"id":2849,"date":"2022-04-25T09:37:00","date_gmt":"2022-04-25T09:37:00","guid":{"rendered":"https:\/\/seopolarity.com\/blog\/?p=2849"},"modified":"2022-04-25T21:47:27","modified_gmt":"2022-04-25T21:47:27","slug":"twitter-has-accepted-elon-musks-43-billion-purchase-offer","status":"publish","type":"post","link":"https:\/\/seopolarity.com\/blog\/twitter-has-accepted-elon-musks-43-billion-purchase-offer\/2022\/","title":{"rendered":"Twitter has accepted Elon Musk’s $43 billion purchase offer"},"content":{"rendered":"\n

According to Reuters, Twitter’s board of directors may announce today that it has accepted Elon Musk’s offer to buy the company for $54.20 per share.<\/p>\n\n\n\n

In its coverage, the news agency cites “people familiar with the matter,” who say the deal could fall through at the last minute.<\/p>\n\n\n\n

According to the New York Times, Musk met with Twitter’s board of directors on Sunday, and discussions continued into the early hours of this morning.<\/p>\n\n\n\n

On April 4, Musk purchased a 9.1 percent stake in Twitter, making him the company’s largest shareholder.<\/p>\n\n\n\n

Twitter announced Musk would be joining its board of directors; however, Tesla’s CEO announced via Twitter on April 9 that he had declined the offer.<\/p>\n\n\n\n

Musk’s stake in Twitter would have been limited to no more than 14.9 percent for the duration of his service, plus 90 days if he had accepted the board seat.<\/p>\n\n\n\n

Can Musk Afford To Purchase Twitter?<\/h2>\n\n\n\n

In a nutshell, yes.<\/p>\n\n\n\n

However, it will necessitate some ingenious financing.<\/p>\n\n\n\n

And, while most buyouts are financed primarily by securing debt against the target company’s assets, Musk is said to have other plans.<\/p>\n\n\n\n

Musk is said to be planning to fund two-thirds of the $46.5 billion financing package with his own assets.<\/p>\n\n\n\n

Reuters reports, citing sources familiar with the situation, that the banks involved did not see enough cash flow at Twitter to justify securing more debt against it.<\/p>\n\n\n\n

Musk’s share of the financing includes a $12.5 billion margin loan secured by Tesla stock.<\/p>\n\n\n\n

According to a regulatory filing, if Tesla’s stock drops 40%, the loan repayment is due.<\/p>\n\n\n\n

Musk has described Twitter’s acquisition as “extremely important to the future of civilization,” and these figures appear to indicate that potential profit is not his primary motivator.<\/p>\n\n\n\n

It’s debatable whether a Musk-led Twitter holds the keys to civilization.<\/p>\n\n\n\n

It would almost certainly alter the digital marketing platform.<\/p>\n\n\n\n

A less moderated, more open Twitter may pose greater risks to brands attempting to use the channel for two-way customer communications and advertising.<\/p>\n\n\n\n

Musk’s experience in online payments, on the other hand, could be a valuable asset for Twitter, particularly for its social commerce strategy.<\/p>\n\n\n\n

In a press release issued this afternoon, Twitter confirmed that it had agreed to the acquisition.<\/p>\n\n\n\n

Elon Musk will own 100% of the company that buys Twitter for $54.20 per share in cash.<\/p>\n\n\n\n

According to the release, the purchase price represents a 38 percent premium over the share price on April 1, 2022, the last day prior to Musk’s purchase of 9.1 percent of Twitter’s stock.<\/p>\n\n\n\n

Twitter’s board of directors unanimously approved the transaction, which is expected to close in 2022.<\/p>\n\n\n\n

Read:<\/h3>\n\n\n\n