Digital desk: Tesla
Inc. CEO Elon Musk agreed to purchase Twitter Inc. for $44 billion, ending
weeks of speculation following his investment in the social media platform
earlier this month.
Here's
what we know so far
According
to Billionaire Elon Musk, in his original bid to buy the Social
Media giant , ‘Twitter’ he informed that he wouldn’t shift
from the former bid of $ 54.20 per share .
Elon
Musk announced an all in cash deal for exactly the same amount. Formerly the
base price was scaled at $43 billion based on the ‘tech giants’
outstanding stock, while on Monday the offered price budged to $44 billion.
This
is a giant leveraged buyout. Musk announced last week that he has raised $25.5
billion from a dozen banks in debt and margin loan financing to support his bid.
When the deal is completed, Twitter will become a privately held company.
So
Now the question arises , after the sealed deal on Monday Who will officially
own Twitter ?
According
to Twitter, the company has been fully owned by Elon Musk , Co Investors were
not listed in the statement, moreover the deal was sealed with an
agreement of no more than minority stake holders .
Monday's
statement didn't reveal whether either side has agreed to pay a termination fee
if the transaction falls apart, but according to an International news
agency , Elon Musk will be at a huge loss if the deal falls apart or if he
walks away. On a deal of this size, the break fees can reach billions of
dollars, giving him an important financial incentive to complete the deal.
Before
the market opens on Thursday, Twitter is set to report its latest earnings. A
conference call isn't planned to discuss the details of the deal or the
financial results, but it will give investors an insight into the state of the
business Musk is buying.
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