Twitter accepts Elon Musk’s $44 billion offer to take the company private — here’s how it all unfolded and what will happen next

“The Twitter Board conducted a thoughtful and comprehensive process to assess Elon's proposal with a deliberate focus on value, certainty, and financing,” said Twitter’s independent board chair Bret Taylor in a press release.

“The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter's stockholders.”

Shares rose 5.7% and closed Monday at $51.70. Let’s take a closer look at the deal.

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How it all unfolded

Earlier this month, Musk revealed that he had purchased more than 83 million shares of Twitter, giving him a 9.2% stake. That massive investment gave the Tesla CEO the opportunity to join Twitter’s board, but he later informed the company that he wouldn’t be taking the seat.

Instead, Musk offered to buy the whole company for $54.20 per share, calling it his “best and final offer.” Twitter's board of directors reacted by adopting a shareholder rights plan known as a “poison pill” — a defense strategy that aims to dilute the ownership interest of a hostile party.

Musk then laid out the details of his plan. In an SEC filing last Thursday, the billionaire entrepreneur said that he would fund the transaction with $25.5 billion in loans and $21 billion in personal equity.

Musk’s offer eventually won over the decision-makers at Twitter: At $54.20 per share, the price represents a 38% premium to Twitter’s closing share price on the day before Musk first revealed his stake in the company.

Twitter to become private

Twitter has been a public company since its IPO in November 2013. But unlike other big-name tech stocks, Twitter shares haven’t performed well in recent years.

Prior to Musk disclosing his stake, Twitter shares traded at similar levels to where they were in late 2013 — when the company first went public. That’s likely one of the biggest reasons why Twitter finally accepted Musk’s offer.

“Twitter has extraordinary potential. I will unlock it,” Musk wrote.

The deal is subject to the approval of Twitter stockholders, certain regulatory approvals and the satisfaction of customary closing conditions. Once the transaction is complete, Twitter will become a private company.

Changes are coming

In March, Musk polled his Twitter followers: “Free speech is essential to a functioning democracy. Do you believe Twitter rigorously adheres to this principle?”

More than two million Twitter users responded to the poll, with 70.4% voting “no.”