Musk’s offer price of $ 54.20 per share represents a 38% premium on the closing price of the Twitter share on April 1, the last trading day before the announcement of Tesla CEO’s more than 9% investment in the company.
Twitter Inc. said in a regulatory statement that Musk, who is the company’s largest shareholder, gave the company a letter Wednesday containing a proposal to buy the remaining Twitter shares it no longer owns.
Shares of Twitter jumped nearly 12 percent before the market opened. The stock is still falling from its 52-week high of about $ 73. Meanwhile, shares of Tesla, the maker of electric vehicles led by Musk, fell about 0.9%.
In a tweet, the SpaceX CEO simply wrote: “I made an offer”.
“I invested in Twitter as I believe in its potential to be the platform for free speech around the world, and I believe that freedom of speech is a social imperative for a functioning democracy.
“However, since I made my investment, I now realize that the company will neither thrive nor serve this social imperative in its current form. Twitter needs to be transformed into a private company.
Billionaire Elon Musk offered to buy Twitter for $ 41.39 billion, according to a regulatory filing on Thursday.
In a tweet, the SpaceX CEO simply wrote: “I made an offer”
Shares of Twitter jumped nearly 12 percent before the market opened. The stock is still falling from its 52-week high of about $ 73
As a result, I offer to buy 100% Twitter for $ 54.20 per share in cash, 54% premium the day before I start investing in Twitter and 38% premium the day before my investment is announced.
“My offer is my best and final offer and if it is not accepted, I will have to reconsider my position as a shareholder.
“Twitter has great potential. I will unlock it “.
Musk added that his offer was not a “threat”, but “simply is not a good investment without the changes that need to be made”.
He continued: “And these changes will not happen without the company becoming private.”
“Twitter’s Board of Directors will carefully consider the proposal to determine the course of action it believes is in the best interest of the Company and all Twitter shareholders,” Twitter said, confirming that it had received Musk’s offer.
He named this price his best and last offer, although the billionaire did not give details about the funding. The offer is non-binding and is subject to financing and other conditions.
Musk said investment bank Morgan Stanley was the financial advisor for the offer.
The total value of the transaction was estimated based on 763.58 million shares outstanding, according to Refinitiv.
Musk rejected the offer to join Twitter’s board earlier this week after revealing his stake in the company, a move that analysts say signaled his intention to take over the company as the board position would have reduced the its share in just under 15%.
Musk has amassed more than 80 million followers since joining the site in 2009 and has used the platform to make many announcements, including teasing a go-private deal for Tesla that led him into hot water with regulators.
Tesla’s honest CEO, known for his social media harassment, told Bret Taylor, Chairman of the Board: “I invested in Twitter as I believe in its potential to be the platform for free speech around the world and I believe that freedom of speech is a social imperative for a functioning democracy “
Musk added that his offer was not a “threat”, but “simply not a good investment without the changes that need to be made”.
Twitter Inc. said in a regulatory statement Thursday that Musk had sent a letter to the company Wednesday containing a proposal to buy the remaining Twitter shares he no longer owned.
Musk has been a vocal critic of Twitter in recent weeks, largely because of his belief that he lags behind the principles of free speech.
The social media platform has angered fans of Donald Trump and other far-right politicians who have suspended their accounts for violating its content standards on violence, hatred or harmful misinformation. Musk also has a history of his own tweets causing legal trouble.
Musk’s move follows his tweet on Saturday asking if the social networking site was “dying” and calling on users such as singer Justin Bieber, who is widely followed but rarely posts.
In other tweets over the weekend, Musk posted jokes about whether to remove the “w” from Twitter’s name and to turn his San Francisco headquarters into a homeless shelter “as no one shows up anyway.” .
He also proposed the removal of ads, Twitter’s main source of revenue.
The second “w” deletion tweet saw Musk give two no-no answers, with 55.8 per cent saying “yes” and 44.2 per cent saying “of course” from 445,158 votes to date. .
In the first post, Musk appeared to be targeting the company’s lax remote work policies, saying he came up with the plan “since no one shows up anyway.” So far, 91.1 percent of the 923,459 respondents have voted in favor of the plan.
It comes after analysts speculated that Musk’s trip to the amusement park train as Twitter’s largest shareholder could be part of a ploy to stage a hostile takeover of the company.
Musk revealed last week that he had become the largest shareholder in Twitter, with a 9.2% stake in the company, on March 14th.
A day after revealing his stake, the CEO of the Parag Agrawal platform announced that the Tesla co-founder had been invited to join the company’s board, a position he gladly accepted.
Accepting the board position, Musk limited himself to how many of the company’s shares he could hold, up 14.9%.
However, on Sunday, Parag announced that the CEO of SpaceX had officially resigned from his position on the board.
Musk, 50, signed a new statement with the Securities and Exchange Commission (SEC) on Monday, saying he had resigned from the board.
A day after revealing his stake, the CEO of the Parag Agrawal platform (photo) announced that the Tesla co-founder had been invited to join the company’s board, a position he gladly accepted.
The document said Musk could “express his views” on Twitter policies and services on the board or on social media. He could also buy additional shares or sell shares on Twitter if he saw fit.
Agrawal said the board would remain “open” to Musk’s contribution, but also warned: “There will be distractions ahead, but our goals and priorities remain unchanged.”
“The board and I had a lot of discussions about Elon joining the board, and with Elon directly,” Agrawal wrote. “We were excited to work together and clarify the risks.
“We also believed that having Elon as the trustee of the company where he, like all members of the board, must act in the interest of the company and all our shareholders, was the best way forward. The board offered him a position. “
Agrawal continued: “We announced on Tuesday that Elon will be appointed to the board on the condition that there will be a background check and formal acceptance.
However, on Sunday, Parag announced that the CEO of SpaceX had officially resigned from his position on the board.
On April 5, Elon Musk promised to “make significant improvements” on Twitter after revealing his large stake in the social networking platform and his intention to join the board.
“Elon’s appointment to the board was due to take effect on 4/9, but Elon announced the same morning that he would no longer be a member of the board.”
Agrawal did not say why Musk did not join the company’s board.
However, he added: “I think this is for the best.
“We have and will always appreciate the contribution of our shareholders whether they are on our board or not.”
The 37-year-old said: “Elon is our biggest shareholder and we will remain open to his contribution”.
“The decisions we make and how we will execute them are in the hands of no one else.
“Let us reduce the noise and stay focused on the work and what we are building.”
