In a shocking move, Elon Musk said on Thursday that he wants to buy a 100% stake in Twitter. For this the CEO of Celebrity has agreed to pay $54.20 per share, which is valued by the social media platform at $43 billion. The Tesla boss announced the proposal in a filing with the US Securities and Exchange Commission on Thursday.
According to a stock exchange filing by Musk, the offer “represents a 54 percent premium over the closing price of common stock on January 28, 2022, the day before the reporting person begins investing in the issuer, and 38 percent on April 1, 2022.” Premium on the closing price of publicly declared common stock on the business day prior to the reporting person’s investment in the issuer.
Why Elon Musk Invested in Twitter
Earlier this month, Musk disclosed that he would buy 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 until later, Twitter chief executive Parag Agarwal informed earlier this week.
In a letter to Twitter board chairman Brett Taylor, Musk detailed the reasons behind investing in the social media platform. “I invested in Twitter because I believe in its potential to be the platform for free speech around the world, and I believe free speech is a social imperative for a functioning democracy. I have since realized now that the company will neither thrive nor meet this social imperative in its present form. Twitter needs to be turned into a private company. As a result, I offer to buy 100 percent of Twitter. I’m doing it.”
Don’t trust management…: Elon Musk
If you thought this might just be another joke from Musk, you’re wrong. “I’m not playing a back-and-forth game. I’ve gone straight to the end. It’s a high price and your shareholders will love it,” Musk said bluntly, according to the document he shared on Twitter.
“If the deal does not work, given that I do not have confidence in management nor do I believe I can make the necessary changes in the public market, I will need to reconsider my position as a shareholder. There’s no risk, it’s just not a good investment without the changes that need to be made,” he noted.
“And those changes won’t happen without taking the company private,” Musk said.
Elon Musk wants to buy Twitter: Know how Twitter responds
Twitter, Inc. confirmed that it has received an unsolicited, non-binding offer 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, which is in the best interest of the Company and all Twitter shareholders,” the company said.
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