By: Natasha Archary
Elon Musk has just successfully secured his purchase of Twitter for R690 billion. Earlier this month, Musk purchased a 9.1% share of the social media platform and later offered to buy Twitter in its entirety for $43 billion.
“Twitter’s market valuation is $ 37 billion, so clearly he’s got enough bank to buy the company. He made an offer to buy per share at $54 dollars per share, which amounts to the $43 billion or R690 billion which he offered. This means this is an extra 6 billion he is offering the stakeholders, and that is really tempting.”
Tech expert and Columnist at iAfrikan.com, Bataung Qhotsokoane speaking to Gugulethu Mfuphi on Kaya Biz
Completion of the purchase could take months because of the regulatory process that Musk will be subjected to.
The deal means that Twitter will be a privately held company and will no longer have its shares traded on the stock exchange.
According to reports by GSMArena, Musk will secure his takeover of Twitter with $25.5 billion of “fully committed debt and margin loan financing” and $21 billion of his own equity on top of that to finance the purchase.
While Elon Musk’s networth is estimated at over $265 billion, most of his fortune is tied up at Tesla.
His decision to take Twitter private has been met with much skepticism, but the 50-year old businessman who has over 84 million Twitter followers has his reasons.
Musk wishes to ensure Twitter maintains its principles on free speech which he says is critical to democracy in the United States.
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