Twitter Will Go Private With Musk's Blockbuster $44 Billion Acquisition

Elon Musk will soon own Twitter, Inc. in its entirety later this year.

According to Twitter's recent announcement, Musk has bought the social media giant for approximately $44 billion, with each share valued at $54.20.

Upon the transaction's completion, the company will become a privately held company. What will going private even mean?

Twitter Acquisition Details

Twitter's announcement stated that the purchase price represents a 38% premium two Twitter's closing stock price on April 1, which was the last trading day before Musk announced an estimated stake of 9% in the company.

Additionally, Musk had secured $25.5 billion of fully committed debt and margin loan financing along with providing an approximately $21 billion equity commitment.

Bret Taylor, witter's Independent Board Chair, assured users that the company's board went through "a thoughtful and comprehensive process" to see if Elon's proposal to buy the company is one focused on value, certainty, and financing. Taylor also believes that accepting Musk's buyout of the company is "the best path forward for Twitter's stockholders."

What The Buyout and Going Private Means for Twitter

When asked about the acquisition, Musk said that he wants to make the social media platform "better than ever" by adding new features to it, making the algorithms open source to increase trust, defeating spambots, and authenticating all humans using it.

"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, Musk added. "Twitter has tremendous potential - I look forward to working with the company and the community of users to unlock it."

According to a report from Fortune.com, Musk stated that he would also tweak the social media platform's content policing which includes censoring or banning certain users for posting hate speech or inciting violence.

This inclusion is in addition to the new features, open-sourcing algorithms, and authenticating actual users he is planning to do.

Musk is also planning to combat the cryptocurrency scams on the platform following his account being hacked to push a bitcoin scam in 2020, per CNET. He also previously lamented that Twitter isn't doing enough to prevent similar scams from happening and is instead focused on products that showcase NFTs as profile pictures, as shown in one of his earlier tweets.

Another benefit of Musk buying the social media platform and making it private is that it will no longer need to report its quarterly financials to the Securities and Exchange Commission (SEC), which Musk has had a bad history with.

You may remember that Musk and the SEC had a confrontation regarding the former allegedly violating securities law after Musk tweeted that he had "secured funding" to take Tesla private.

A more recent incident with the SEC happened in late February, when Elon and his brother, Kimbal, got into hot water for potentially violating insider trading rules over the sale of his Tesla shares which he created a poll for on Twitter.