Elon Musk offers to buy Twitter, according to a filing with the US Securities and Exchange Commission, so this story is far from over.
In order to acquire the entire company, the billionaire has stated that he is willing to spend $54.20 a share for each stake. It would be an all-cash deal valued at $43.4 billion for the social network.
“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy,” Elon Musk wrote in an email to Bret Taylor, Twitter’s chairman of the board (and Salesforce co-chief executive). The email was reproduced in today’s SEC filing. “However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.”
“As a result, I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before I began investing in Twitter, and a 38% premium over the day before my investment was publicly announced. My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder,” he added.
Twitter shares opened at $50.97 per share in pre-market trading, an increase of 11.97 percent from the previous day’s closing price. Since November 4, 2021, the share price of Twitter has been trading below $54.20. During the month of October, Twitter’s stock was trading above $60 per share.
On April 4, Twitter announced that Tesla CEO Elon Musk had purchased a large interest in the company. Tesla CEO Elon Musk has become Twitter’s top shareholder after purchasing a 9.2 percent stake in the firm.
The next day, Twitter announced that the entrepreneur most known for his work at Tesla and SpaceX would be joining its board of directors. He will be joining the board of directors. Musk would be prohibited from owning more than 14.9% of the firm as a board member.
However, Twitter CEO Parag Agrawal then announced a big turnaround; Tesla CEO Elon Musk informed the business that he will not be joining the board of directors. A lot of people are wondering what Tesla CEO Elon Musk will do next.
After resigning from the board, many observers expected the billionaire to launch a hostile takeover. According to Forbes, Elon Musk is the world’s richest man with a net worth of $273.6 billion. Musk’s purchase of Twitter would be a substantial expenditure, but it is possible.
The SEC filing was released by Elon Musk via Twitter. He confessed, “I made an offer.” Twitter issued a statement confirming receipt of Musk’s offer and says its board will “seriously” evaluate it:
A non-binding proposal from Elon Musk to acquire all of the Company’s common stock for $54.20 per share has been confirmed by [Twitter] today. Following a thorough evaluation of the proposal, the Twitter Board of Directors will make a decision that is in the best interest of the company and all Twitter investors overall.