After becoming Twitter’s biggest shareholder earlier this month, the CEO of Tesla has now made an offer to acquire 100% of the company to make it private (via Bloomberg). Musk is offering $54.20 per share in cash, which values Twitter at approximately $43 billion.
Musk announced the offer in a filing with the US Securities and Exchange Commission yesterday, and Twitter has confirmed the “unsolicited, non-binding proposal” from Musk in a press release today. “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 said.
This hostile takeover comes just a few days after Musk refused a seat on Twitter’s board of directors. In a letter to Bret Taylor, Chairman of the Board, Musk explained that Twitter “needs to be transformed as a private company” to allow him to “unlock” its full potential. My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder,” Musk said.
Musk is the richest man on the planet with a $260 billion net worth according to Bloomberg. In comparison, Twitter is currently valued at $37 billion. If Musk seems absolutely serious about acquiring Twitter, the notorious troll apparently couldn’t resist including a marijuana (420) reference in his $54.20 offer price.
A couple of days ago, Twitter CEO Parag Agrawal warned that “There will be distractions ahead” after Musk became the company’s biggest shareholder. If the Twitter CEO was definitely on point, Twitter shares already jumped 13% in pre-market trading.
You can find Elon Musk’s full letter to Twitter’s board below:
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% 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.
Twitter has extraordinary potential. I will unlock it.
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