Twitter has accepted Elon Musk’s takeover bid. What happens next?

Twitter‘s acceptance of Elon Musk‘s roughly $44 billion takeover bid brings the billionaire Tesla CEO one step closer to owning the social media platform.

The deal is expected closing sometime in the next year. Before the deal can be finalized, shareholders and regulators in the U.S. as well as in other countries where Twitter is active, will need to weigh in.

Accepted, now what?

The process is off to a good start for Musk, given that Twitter’s board has unanimously approved his offer and is recommending shareholders do the same.

Upon announcing the deal Monday, Twitter noted that the bid, which represents a 38% premium to the company’s closing stock price on April 1, is a “substantial cash premium” and would be “the best path forward for Twitter’s stockholders.”

When Twitter’s board adopted an anti-takeover provision known as a “poison pill” just 10 days ago, the move was widely seen as a telltale sign that the directors were gearing up to rebuff Musk’s opening offer or perhaps seek another suitor willing to pay more.

But the battleground shifted dramatically late last week when Musk disclosed he had lined up $46.5 billion – including $21 billion of his personal fortune _ to pay for the purchase. Musk saidAdditional investors may also be interested in financing the project.

The locked-in financing not only underscored the seriousness of Musk’s pursuit, but also appeared to open the door to other large Twitter shareholders interested in hearing more about his plans for the San Francisco company.

The details of those conversations aren’t known, but Musk could point to a more than 20-year history building and running several businesses _ most notably as the longtime CEO of Tesla. The electric car maker is currently valued at $1 trillion — roughly 25 times more than Twitter.

“I think there is nothing better for Twitter than Elon Musk buying it and ideally replacing the board, and also doubling down on investments into products and new revenue-generating sources,” saidJohn Meyer, technology investor and entrepreneur. “Musk has the track record that he can do the impossible.”

It is easy to see how other Twitter shareholders would welcome a shakeup and an opportunity to cash in their investment. Before Musk disclosed his 9% stake in Twitter earlier this month, the shares were trading below $40 – not that much more it its $26 price when Twitter went public in November 2013. The tech-driven Nasdaq has tripled its value, even with a recent downturn. Twitter has been a slow lane because it has struggled to post consistent profits and has generated little revenue growth in comparison to Google and Facebook, two of the most powerful digital advertising platforms.

Meanwhile, Tesla’s stock is now worth nearly 300 times more than when it went public in 2010. The automaker has been struggling to make a profit for more than ten years. However, it is now very profitable with net income of $3.3B in the first three months alone.

What next?

As is customary once a company agrees to be acquired, the buyer gets to take a closer look at its books to make sure there aren’t any red flags that haven’t come up via the company’s public filings.

This step in the process isn’t likely to cause any obstacles for the deal, saidAngelo Zino is a tech analyst at CFRA.

“He’s acquiring this company, not from a financial perspective,” Zino said. “He’s going to do what he wants with it and he’s probably going to look to make significant changes to the business model of the company.”

What advice could regulators offer?

Twitter generated $5 billion last year. $2.8 billion came from the U.S., the rest was earned overseas. Zino said. The Federal Trade Commission of the United States and the European Commission in Europe are two regulatory agencies that could review the proposed Twitter Buyout.

The agencies focus on two main areas: how the sale or purchase of a company might affect the competition in the industry and whether it violates antitrust law.

These reviews may take months or longer but are more common when two companies working in the same sector combine, or in cases where a single buyer has a large stake, such as if there is already a substantial ownership stake in other companies in that industry.

Neither Tesla, nor Musk’s other company, Space Exploration Technologies, or SpaceX, are social media platforms, so antitrust concerns are not expected to arise when regulators review the deal, analysts said.

“We do not expect any major regulatory hurdles to the deal getting done as this soap opera now ends with Musk owning Twitter,” Wedbush analyst Daniel Ives wrote in a research note Monday.

What time do shareholders have the right to vote?

The deal will close in 2022, subject the approval of Twitter shareholders. Twitter hasn’t announced the timing of a shareholder vote, though the company’s annual meeting is set for May 25, which could offer a convenient time to poll shareholders.

A company can choose to hold a shareholder ballot at any time. This is even after regulators have reviewed the proposed takeover.

What about Twitter leadership

At this early stage, it’s unclear what will happen to Twitter’s current board or management team if the deal is completed, but Musk has made it abundantly clear that he believes the company has been poorly run. That assessment is a strong indication that Musk’s makeover will also include a purge of Twitter’s top ranks.