Just in! and this is breaking, Tesla CEO Elon Musk offered to buy Twitter for $54.20 a share so it can be ‘transformed as a private company.
Elon announced the offer in a filing with the U.S. Securities and Exchange Commission on Thursday. The billionaire, who also controls Tesla Inc., first disclosed a stake of about 9% on April 4.
Elon Musk sent a letter as disclosed in a securities filing, which reads-
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.
Twitter said that its board would review the proposal and any response would be in the best interests of “all Twitter stockholders.”
Elon has also made a tweet with the link to the statement
I made an offer https://t.co/VvreuPMeLu— Elon Musk (@elonmusk) April 14, 2022
If this deal gets confirmed then its value will be something around $41 billion. - says Reuters.
Bloomberg reports say-
Musk can afford a takeover of Twitter. He’s currently worth about $260 billion according to the Bloomberg Billionaire’s Index, compared with Twitter’s market valuation of about $37 billion.
In a letter to Twitter’s board, Musk said he believes Twitter “will neither thrive nor serve [its free speech] societal imperative in its current form. Twitter needs to be transformed as a private company”.
Musk has hired Morgan Stanley as his adviser for the takeover. - Bloomberg added.
Musk first disclosed his stake in the social media giant on April 4. He later landed a seat on the company’s board of directors before reversing those plans.
The Tesla CEO has previously criticized the social media giant publicly, polling people on Twitter last month about whether the company abides by free speech principles. He also said he was considering building a new social media platform.