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Twitter has accepted Elon Musk's $44 million buyout, the company confirmed in a news release obtained by CNN on Monday (April 25) as part of a deal that is expected to close in 2022.
CNN reports shareholders will receive $54.20 in cash for each share of Twitter stock they own, which matches an original offer made by Musk and marks a 38% premium compared to its original listing price on the day Musk initially revealed his stake in the social media company.
"The Twitter Board conducted a thoughtful and comprehensive process to assess Elon's proposal with a deliberate focus on value, certainty, and financing," Twitter independent board chair Bret Taylor said in a statement obtained by CNN, referring to the deal as "the best path forward for Twitter's stockholders."
The official confirmation comes hours after BBC.com reported share trading in Twitter's stock increased its price up 5.1% to $51.57, prior to the U.S. stock market opening on Monday, amid speculation that an agreement would soon be reached.
Bloomberg.com reports Twitter's board met with Musk whose net worth is listed on the Bloomberg Billionaires Index at about $273 billion, making him the world's richest person -- over the weekend to discuss his $43 billion to purchase the remaining shares of the social media company.
"I hope that even my worst critics remain on Twitter, because that is what free speech means," Musk tweeted prior to the confirmed deal.
Twitter had initially rejected Musk's approach, however, a source with knowledge of the situation told Bloomberg that negotiations are now "in the final stretch."
Musk had offered to acquire the remaining shares of the company for $54.20 per share, valuing Twitter at $43.4 billion, according to an SEC filing, which the billionaire shared on his verified account on April 14.
The figures represent a 38% premium over Twitter's April 1 closing price -- which was the last trading day prior to the billionaire revealing that he became Twitter's biggest shareholder -- and an 18% premium over its closing price on April 13.
The filing confirmed Musk sent an offer letter to Twitter.
"I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy," Musk said in the offer letter. "However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company."
CNN noted that the offer letter specifically addressed Bret Taylor, the chair of the Twitter board, and not Parag Agrawal, who assumed the role of CEO last fall, during the initial report.
"Twitter has extraordinary potential," Musk added. "I will unlock it."
Twitter confirmed it received the offer and said its board planned to review the proposal "to determine the course of action that it believes is in the best interest of the company and all Twitter stockholders" in a statement obtained by CNN.
Earlier this week, a Twitter shareholder filed a lawsuit against Musk over his purchase of the company's stock, accusing the billionaire of failing to publicly disclose his purchases when it reached 5%, CNBC reported.
Investors must disclose their purchase within 10 days of exceeding the 5% threshold in adherence with federal law.
Musk was initially offered a seat on Twitter's Board of Directors, but ultimately turned down the offer earlier this month.
Musk vowed to "make significant improvements to Twitter in coming months" amid the announcement that he'd join the social media's company board of directors after purchasing 9% of Twitter's stock and becoming its largest shareholder earlier this month.
Musk had stated that he'd given "serious thought" to purchasing stock in Twitter, which he posts on regularly, but claimed was "failing to adhere to free speech principles" which he claimed "fundamentally undermines democracy."
The billionaire's decision came amid criticism from conservatives following Twitter's enforcement of its rules and a ban on former President Donald Trump based on his social media posts playing a role in the lead-up to the the January 6, 2021 insurrection.