Twitter has been acquired by Elon Musk.
The Twitter board has finally agreed to accept Musk’s $44 billion acquisition offer, in what has become the biggest “will they/won’t they” tale since Ross and Rachel.
After a weeks-long slide, Twitter’s stock rose early Monday morning on rumors.
When the stock went down recently, investors said it was because they didn’t believe in the deal between Tesla CEO Elon Musk and Twitter.
Now that that’s out of the way, we may expect equities to rise in the short term as a result of the enormous agreement.
Where it all began
It was earlier this month that Musk bought 9.2% of Twitter’s stock.
Following that, the company granted Musk a board seat in what most analysts saw as a clear attempt to prevent the world’s richest man from buying further stock.
Musk initially expressed his desire to take the job.
However, he eventually declined before making a full-scale bid for the company. Why take a seat when you can take over the entire structure?
According to reports, Twitter was hesitant to accept the agreement.
According to the first reports, the company’s board of directors unanimously approved and put in place a “poison pill” strategy to stop a hostile takeover.
In the meantime, it appeared that Twitter had a chance to avert the buyout. There was even talk that a suitor who was more accepting of the status quo would appear.
However, as CFRA senior equities analyst Angelo Zino told CNN, it became clear that no “white knight” would appear and outbid Musk’s offer.
Where it’s headed
Residents of the internet’s most politically divided social media network might expect some changes now that Musk is in charge.
In a now-public letter to the Twitter board, Musk emphasized his desire to elicit broad reform within the firm as a method of attaining his own ambitions for the app.