Elon Musk buys Twitter for $44bn

Elon Musk clinched a deal to buy micro-blogging site, Twitter, for $44 billion cash on Monday in a transaction that will shift control of the social media platform populated by millions of users and global leaders to the world’s richest person.

It is a seminal moment for the 16-year-old company that emerged as one of the world’s most influential public squares and now faces a string of challenges.

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

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

“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.

Twitter’s shares were up about 6% following the news to $51.90.

The deal represents a near 40% premium to the closing price the day before Musk disclosed he had bought a more than 9% stake. Even so, the offer is below the $70 range where Twitter was trading last year.

On Monday, Musk told his more than 80 million followers that the company has tremendous potential and he wanted to make it better by adding new features, making the algorithms open source to increase trust and defeat spam bots.

“I think if the company were given enough time to transform, we would have made substantially more than what Musk is currently offering,” said Jonathan Boyar, managing director at Boyar Value Group, which holds a stake in Twitter.

He, however, added: “This transaction reinforces our belief that if the public markets do not properly value a company, an acquirer eventually will.”

Musk’s move continues a tradition of billionaires buying control of influential media platforms that include Rupert Murdoch’s takeover of the New York Post in 1976 and the Wall Street Journal in 2007 and Jeff Bezos’ 2013 acquisition of the Washington Post.

The transaction was approved by the board and is now subject to a shareholder vote. No regulatory hurdles are expected, analysts said.

The Star