Dogecoin (DOGE) quotes reacted with a sharp increase to the news about the decision of Twitter management to sell the social network to Elon Musk. Over the past day, the meme-cryptocurrency has grown by 24.2%, according to CoinGecko.
On the evening of April 25, the price of DOGE reached $0.17 at the moment. Currently, the rate has corrected to around $0.15.
The sharp rise allowed Dogecoin to dislodge Polkadot from the 10th line of the cryptoasset capitalization rating.
According to a press release, Twitter management has accepted Elon Musk’s takeover bid for about $44 billion. Tesla’s CEO will pay $54.2 per share, up 38% from what it was on April 1, when Musk acquired a 9.2% stake in the company.
The deal is expected to close by the end of 2022. After that, Twitter will become a private company. Shares can be bought and sold only on the over-the-counter market.
Musk allocated $21 billion from personal funds to buy the social network. Another $25.5 billion was provided to the entrepreneur by a group of banks led by Morgan Stanley.
Earlier it became known that the leadership of Twitter has changed its attitude towards the proposal of the billionaire. The new round of negotiations took place after filing with the SEC documents on raising funding in the amount of $46.5 billion.
Twitter’s independent chairman Bret Taylor said the board had carefully considered the takeover and concluded it was “the best course of action for shareholders.”
Commenting on the deal, Musk said he hopes his fiercest critics won’t leave the platform, “because that’s what freedom of speech means.”
Musk also called Twitter a “digital city square” where vital questions about the future of humanity are discussed.
The founder of the social network, Jack Dorsey, welcomed the decision of the board of directors. He emphasized that Musk’s goal – to create “the most reliable and open platform” – is correct. It echoes the tasks of the current head of the social network, Parag Agrawal.
On April 14, the head of Tesla offered to buy the social network for more than $43 billion. He explained this by the intention to create an “inclusive arena for free speech”, and not by the desire to make money.
Recall that Ethereum co-founder Vitalik Buterin supported the takeover of Twitter by Musk, but doubted the positive effect in general from the transition of media platforms to the property of billionaires.