Elon Musk to Acquire Twitter & Take it Private

Twitter-Musk Deal

Twitter (TWTR) announced on Monday that that it has entered into a definitive agreement to be acquired by an entity wholly owned by Elon Musk, for $54.20, which is 38% higher that the stock's closing price on April 1. The transaction is expected to close in 2022 and is subject to shareholder and regulatory approval. Upon completion, Twitter will become a privately held company. [1]

The CEO of Tesla (TSLA) and SpaceX has secured $25.5 billion of fully committed debt and margin loan financing and is providing an approximately $21.0 billion equity commitment.

Mr Musk who has more than 80 million followers on the social media platform and had criticized it for "failing to adhere to free speech principles" [2], had said at TED2022 earlier in the month that "I think it's very important for there to be an inclusive arena for free speech". [3]

On Monday's press release, he noted that "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", adding that he wants to make Twitter "better than ever".

This deal ends a nearly one-month saga, which started with the disclosure that Mr Musk had acquired a roughly 9% stake in the social media company [4]. After having rejected a seat at the Board of Directors, which would cap his shareholding, in mid-April he moved with a bid to acquire 100% of Twitter, for $54.20 per share. [5]

Why Trade Shares with FXCM?

  • $0.00 Commission*
  • Mini Shares - Fractional Share Trading with minimum trade sizes of 1/10 of a share.
  • Low Margin Requirements

Mr Musk had commented that this would be his "best and final offer" and that if not accepted, he would need "to reconsider" his position as a shareholder. Twitter had responded by adopting a Rights Plan that would make a hostile takeover hard, commonly referred to as "poison pill". [6]

It is unclear at this stage, if the world's richest man according to Forbes [7], will become CEO of Twitter and remains to be seen how/if it will change, but Mr Musk is disruptor and has already proposed various changes.

Twitter is expected to announce its financial results for the first quarter of the year on Thursday April 28 before market open, but will not hold a corresponding conference call.

TWTR.us rose yesterday and gains more than 30% this month, helped by the jump after the news of Mr Musk's stake in early April.

Nikos Tzabouras

Senior Financial Editorial Writer

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.



Retrieved 26 Apr 2022 https://www.prnewswire.com/news-releases/elon-musk-to-acquire-twitter-301532245.html


Retrieved 26 Apr 2022 https://twitter.com/elonmusk/status/1507777261654605828


Retrieved 26 Apr 2022 https://www.youtube.com/watch


Retrieved 26 Apr 2022 https://d18rn0p25nwr6d.cloudfront.net/CIK-0001418091/f66f56c1-eb52-43f8-a7ff-992dc80a7396.pdf


Retrieved 26 Apr 2022 https://d18rn0p25nwr6d.cloudfront.net/CIK-0001418091/aa412090-b7e5-470b-bfea-35d48c913951.pdf


Retrieved 26 Apr 2022 https://www.prnewswire.com/news-releases/twitter-adopts-limited-duration-shareholder-rights-plan-enabling-all-shareholders-to-realize-full-value-of-company-301526627.html


Retrieved 19 Jul 2024 https://www.forbes.com/billionaires/

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}

When executing customers' trades, FXCM can be compensated in several ways, which include, but are not limited to: spreads, charging commissions at the open and close of a trade, and adding a mark-up to rollover, etc. Commission-based pricing is applicable to Active Trader account types.

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.