What is Privatization? (Explained with Elon Musk and Twitter)

Elon Musk is buying Twitter for approximately 44 billion dollars - but what does this actually mean?

This is what actually happens when you take a company private.

When Elon Musk offered to buy twitter, the Board of Directors was legally obligated to consider the offer. Elon offered to buy the company at a premium over the share price on the day of his offer, a value of about $44 Billion dollars. Now that the board has accepted the offer, every single shareholder will eventually have the option to be paid $54.20 for each of their shares, the per-share buyout price, which was premium to the existing stock price.

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