Twitter, which went public in 2013, also has a tumultuous corporate history. It has frequently dealt with the board’s inaction and drama with its founders, and has been accepted by other interested buyers in the past, including Disney and Salesforce. In 2020, activist investment firm Elliott Management took to Twitter and called for Jack Dorsey, one of its founders, to resign as chief executive. Mr. Dorsey resigned last year.
“The monetization of this company is very low, especially compared to other platforms and competitors, such as Facebook,” said Pinar Yildirim, a professor of marketing at the University of Pennsylvania Wharton School of Business. “If you look at it from a purely business value point of view, there is definitely room for improvement.”
In a statement, Twitter chairman Brett Taylor said the board had “conducted a thoughtful and comprehensive process” on Mr. Musk’s bid and that deal would “deliver significant cash premiums” to shareholders.
Regulators are unlikely to seriously challenge the transaction, with former antitrust officials saying the government usually intervenes to stop a deal when a company buys a competitor.
The deal came together in a matter of weeks. Mr. Musk, who also heads electric car maker Tesla and rocket maker SpaceX, began buying shares of Twitter in January and announced earlier this month that it had gained more than 9 percent.
He immediately started the game of guessing what Mr. is. Musk planned to do with the platform. Twitter executives initially welcomed him to the board of directors, but he changed his mind within a few days and instead began bidding to buy the company entirely.
Any deal initially seemed unlikely as the entrepreneur did not say how he would finance the deal. Twitter executives also appeared suspicious, as it was difficult to determine whether Mr. Musk would probably be joking. In 2018, for example, he tweeted that he planned to privatize Tesla and unequivocally claimed that he had “secured funding” for such deals.