By Alice Seeley

Twitter announced on April 25 that it accepted Tesla CEO Elon Musk’s offer of $44 billion to buy the social media company and take it private. The board has approved the transaction and is now subject to a shareholder vote.

In a prepared statement, Twitter said Musk secured $25.5 billion of debt and margin loan financing and will provide a $21 billion equity commitment. Under the terms of the agreement, Twitter stockholders will receive $54.20 in cash for each share of Twitter stock that they own. The purchase price represents a 38% premium to Twitter’s closing stock price on April 1, 2022, the last trading day before Musk disclosed a 9.2% stake in the company.

The deal is expected to close in 2022, subject to the approval of Twitter stockholders, the receipt of applicable regulatory approvals, and the satisfaction of other closing requirements.

“The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing. The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders,” according to Twitter chairman Brett Taylor.

“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. “I want to make Twitter better than ever by enhancing the product.”

Trading of Twitter’s stock was paused leading up to the announcement. After the announcement, Twitter stock increased 6% to $51.98.