After months of pitching, billionaire Elon Musk has finally acquired Twitter. The social media company confirmed the development on Monday, announcing that it had entered into a ‘definitive agreement’ to be acquired by an entity owned by Musk for $ 54.20 per share in cash, a 38 percent premium to Twitter’s closing stock price on 1 April 2022.
Musk and his backers will be paying $44 billion for the acquisition. The billionaire has secured $25.5 billion of fully committed debt and margin loan financing and provides an equity commitment of nearly $21.0 billion. With this, Musk is also set to take charge of all the existing acquisitions of Twitter Inc.
Since being founded in 2006, Twitter has made a series of strategic acquisitions to be handed to Musk.
One of the first strategic acquisitions by Twitter Inc was Tweet Deck, a third-party social media dashboard application for the management of Twitter accounts. The social media giant paid $40 million for the acquisition back in 2011.
In 2014, Twitter acquired mobile ad retargeting startup Tap Commerce for $100 million. In its early years, Tap Commerce helped mobile businesses retarget their ads based on previous user activity. Facebook was also using the service of Tap Commerce at the time of acquisition.
Twitter also acquired its long-time data partner Gnip for $134 million in 2014. Gnip was among the first social media API aggregation service provider and had long provided access to public Twitter data. Besides Twitter, Gnip also offered API aggregation services to other social media networks like Reddit, Instagram, Tumblr, Bitly, etc.
In its largest acquisition till then, Twitter paid $479 million to take over the business of Adtech Startup TellApart. The purchase was initially reported to cost $ 533 million, but the deal was sealed at a $ 54 million lower price.
Magic Pony Technology
Twitter announced the acquisition of London-based Magic Pony Technology in 2016. The social media giant paid $150 million for the deal. Magic Pony Technology worked in developing neural networks, a system that is essentially designed to think like the human brain. The technology could be used differently; for example, it could help enhance the quality of a picture or video taken on a low spec camera phone or help develop graphics for virtual reality or augmented reality applications.