in our free newsletter.

Thousands benefit from our email every week.

Sign up for our Moneywise newsletter to receive a steady flow of actionable ideas from Wall Street's top firms.

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.

Contemporary art has outperformed the S&P 500 by 131% for the past 26 years. Join the exclusive platform to invest in million-dollar works by artists like Banksy, Basquiat, and more. Get started today and diversify your portfolio with art.

Learn More

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.”

Now, Musk can take matters into his own hands.

“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 said in Monday’s press release. “I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans.”

It’s earnings season and Twitter is scheduled to report Q1 results on Thursday, Apr. 28 before the bell. But due to the pending transaction, the company has canceled its earnings conference call.

Sign up for our Moneywise newsletter to receive a steady flow of actionable ideas from Wall Street's top firms.

Acorns rounds your everyday purchases to the nearest dollar and invests your spare change. That means any spare change from your daily spending – gas, coffee or groceries – will go towards building your wealth. Get up to $20 when you sign up with this special link.

Get Started

More from Moneywise

Meet Your Retirement Goals Effortlessly

The road to retirement may seem long, but with WiserAdvisor, you can find a trusted partner to guide you every step of the way

WiserAdvisor matches you with vetted financial advisors that offer personalized advice to help you to make the right choices, invest wisely, and secure the retirement you've always dreamed of. Start planning early, and get your retirement mapped out today.

About the Author

Jing Pan

Jing Pan

Investment Reporter

Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.

What to Read Next


The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.