Mr Musk had secured $46.5 billion for the takeover and proposed $54.20 per share, causing Twitter 11 board members to backtrack on their initial position to fight off the acquisition and re-examine the bid.
The company’s stock increased by four per cent on Monday as a result of heightened speculations regarding the takeover.
However, after several hours of deliberations on the matter, an agreement has been reached to sell off the micro blogging platform to Mr Musk, who is currently its biggest shareholder as he recently bought over 73 million shares.
The company’s second-biggest shareholder is The Vanguard Group Inc., owning an 8.39 per cent and Morgan Stanley owning a 8.08 per cent stake.
The takeover comes amid skepticism from another Twitter shareholder and Saudi Arabian billionaire Al Waleed bin Talal Al Saud who rejected Mr Musk’s offer to buy out the social media company.
“I don’t believe that the proposed offer by Elon Musk ($54.20) comes close to the intrinsic value of Twitter given its growth prospects. Being one of the largest & long-term shareholders of Twitter, Kingdom Holding Company & I reject this offer,” Mr Al Saud said in a tweet on Thursday.
The Tesla CEO has often criticised Twitter’s policies over targeted misinformation, calls for violence, harassment and conspiracy theories. He has often been accused of manipulating the markets using his tweets.
In a memo sent to employees on Monday, Twitter CEO, Parag Agrawal, announced the takeover of the platform by Elon Musk.
“Team,
The Twitter Board has announced it has entered into an agreement for Twitter to be acquired by a private entity fully owned and controlled by Elon Musk. I know this is a significant change and you’re likely processing what this means for you and Twitter’s future. I will be gathering the company together at 2pm pacific to speak with you directly and answer your questions. I have also invited our Chairman of the Board, Bret Taylor, to join us. See you there.
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