The world's richest man, Elon Musk will buy out microblogging site Twitter for a whopping $44 billion. Twitter announced on April 25 that it has entered into a definitive agreement to be acquired by an entity wholly owned by Elon Musk, for $54.20 per share in cash in a transaction valued at approximately $44 billion. Upon completion of the transaction, Twitter will become a privately held company.

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Reuters reported that Musk has clinched a deal to buy Twitter Inc 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.

Billionaire @Tesla CEO @ElonMusk reaches deal to acquire @Twitter for approximately $44 billion.

Musk, the world's wealthiest person, has said he thinks Twitter is not living up to its potential as a platform for free speech.MORE: https://t.co/t42WQdfuW8 pic.twitter.com/2B4Cb1csJl— The Associated Press (@AP) April 25, 2022

Meanwhile, Twitter CEO Parag Agrawal will receive a massive $42 million payout if terminated after Musk's deal. According to research firm Equilar, Agrawal would get an estimated $42 million if he were terminated within 12 months of a change in control at the social media company. Musk ended Twitter's run as a public company since 2013. The world's richest man said in a securities filing on April 14 that he did not have confidence in Twitter's management.

Equilar's estimate includes a year’s worth of Agrawal's base salary plus accelerated vesting of all equity awards, an Equilar spokesperson said, based on Musk’s offering price of $54.20 per share and terms in the company's recent proxy statement. A Twitter representative declined to comment on Equilar's estimate.

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

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.

With inputs from Reuters.

First Published:Apr 26, 2022 12:50 AM IST