Elon Musk Purchases Twitter for $44 Billion and Transforms Site into a Private Company

Elon Musk won an agreement today, Monday, to purchase Twitter for $44 billion in a deal that will transfer control of the social media platform, used by millions and global leaders, to the richest person in the world. Discussions about the agreement, which began last week in uncertainty, accelerated over the weekend after Musk teased Twitter shareholders with the financial details of his offer. This marks a pivotal moment for the 16-year-old company, which has emerged as one of the most influential forums in the world and now faces a series of challenges. Under pressure, Twitter began negotiating with Musk to buy the company at the proposed share price of $54.20. The deal ends Twitter's run as a public company since its IPO in 2013, approximately nine years of trading. Twitter's shares rose about 6% following news of the agreement, while Tesla's stock fell after Musk's acquisition of Twitter. Musk argued that the Twitter platform needs to become private to grow and transform into a true platform for free speech. The deal comes just four days after Musk unveiled a financing package to support the acquisition, prompting Twitter's board to take the deal more seriously and pushing many shareholders to urge the company not to miss the opportunity, as reported by Reuters on Sunday. The sale represents an acknowledgment from Twitter that its new CEO, Parag Agrawal, who took over in November, is not generating enough momentum in making the company more profitable, despite being on track to meet ambitious financial goals set for 2023. Twitter's shares had been trading above Musk's offer price in November. Musk's negotiating tactics—making one offer and sticking with it—have been likened to veteran billionaire Warren Buffett's approach in negotiating acquisitions.