Why Elon Musk bought twitter? Elon Musk bought Twitter but who sold it??

Elon Musk bought Twitter but who sold it

Why Elon Musk bought twitter?

Billionaire Elon Musk has reached an agreement to acquire Twitter for approximately $44 billion, the company said. The outspoken Tesla CEO, the world's wealthiest person, has said he wants to buy Twitter because he thinks it's not living up to its potential as a platform for "free speech."

Twitter said it will become a privately held company after the sale is closed.

"Twitter has a purpose and relevance that impacts the entire world," its CEO Parag Agrawal said in a tweet. "Deeply proud of our teams and inspired by the work that has never been more important," Agrawal said.

WHO SOLD TWITTER

Twitter's board at first enacted an anti-takeover measure known as a poison pill that could have made a takeover attempt prohibitively expensive. But when Musk outlined the financial commitments he'd lined up to back his offer of $46.5 billion — and no other bidders emerged — the board opened negotiations with him.

Bret Taylor, chair of Twitter's board of directors, aimed to reassure employees that the agreement with Musk prioritized "operating continuity" until the deal was closed.

"I think we feel very comfortable that (the deal) gives this team the ability to continue to make the company successful in between signing and closing the transaction," Taylor said.

Discussions over the deal, which last week appeared uncertain, accelerated over the weekend after Musk wooed Twitter shareholders with financing details of his offer.

POISON PILL

Twitter adopted a poison pill after Musk made his offer to prevent him from raising his more than 9 per cent stake in the company above 15 per cent without negotiating a deal with its board. In response, Musk had threatened to launch a tender offer that he could use to register Twitter shareholder support for his bid, Reuters reported.

A concern that Twitter's board weighed was that unless it sought to negotiate a deal with Musk, many shareholders could back him in a tender offer.

While the poison pill would have prevented Twitter shareholders from tendering their shares, the company was worried that its negotiating hand would have weakened considerably if it was shown to be going against the will of many of its investors.

Under pressure, Twitter started negotiating with Musk to buy the company at the proposed $54.20 per share price.

The deal finally culminated Twitter's run as a public company since its 2013 initial public offering.

"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 a statement.