Elon Musk on Thursday said that he wants to buy 100 per cent stake of Twitter. For this, the celebrity chief executive has agreed to pay $54.20 per share, valuing the social media platform at $43 billion. Tesla boss announced the offer in a filing with the US Securities and Exchange Commission on Thursday.
According to the stock exchange filing by Musk, the offer “represents a 54 per cent premium over the closing price of the Common Stock on January 28, 2022, the trading day before the Reporting Person began investing in the Issuer, and a 38 per cent premium over the closing price of the Common Stock on April 1, 2022, the trading day before the Reporting Person’s investment in the Issuer was publicly announced.”
Why Elon Musk Invested in Twitter
Earlier this month, Musk disclosed buying a 9 per cent stake in the social media giant. This made him the largest shareholder in Twitter and offered him a seat on the company’s board of directors. However, the billionaire did not join the board later, Twitter chief executive Parag Agrawal informed earlier this week.
In a letter to Bret Taylor, chairman of Twitter Board, Musk elaborated his reasons behind investing in the social media platform. “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. 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 per cent of Twitter,” he mentioned.
Don’t Have Confidence in Management…: Elon Musk
If you think this might be another prank by Musk, you are wrong. “I am not playing the back-and-forth game. I have moved straight to the end. It’s a high price and your shareholders will love it,” Musk stated clearly, according to document shared by him on Twitter.
“If the deal doesn’t work, given that I don’t have confidence in management nor do I believe I can drive the necessary change in the public market, I would need to reconsider my position as a shareholder. This is not a threat, it’s simply not a good investment without the changes that need to be made,” he mentioned.
“And those changes won’t happen without taking the company private,” Musk added.
Elon Musk Wants to Buy Twitter: Know What Twitter Replies
Twitter, Inc. confirmed it has received an unsolicited, non-binding proposal from Elon Musk to acquire all of the Company’s outstanding common stock for $54.20 per share in cash.
“The Twitter board of directors will carefully review the proposal to determine the course of action that it believes is in the best interest of the company and all Twitter stockholders,” the company added.