American entrepreneur, investor, and business magnate, Elon Musk has finally made an offer to purchase 100 percent of Twitter in an updated 13D filed with SEC.
What is Elon Musk Offer for Twitter
In the proposal, Musk said this is the “best and final” offer he can offer at a market price of $54.20 per share in cash.
With the Tesla owner’s wealth growing up to $260 billion with Twitter’s market valuation about $37 billion, Musk’s offer values Twitter at about $43 billion.
Musk is aiming to privatize Twitter and “acquire all of the outstanding Common Stock of the Issuer not owned by the Reporting Person for all cash consideration valuing the Common Stock at $54.20 per share” so as it can undergo necessary changes and enhance free speech.
Elon Musk buys Twitter? Why Elon Musk is Buying Twitter
“Twitter has extraordinary potential. I will unlock it.” – Elon Musk
“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,” Musk said in a letter sent to Twitter chairman Bret Taylor.
“I would need to reconsider my position as shareholder,” says Musk if his offer is not accepted.
In a press release, Twitter confirmed receiving the offer, saying, “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.”
How much of Twitter does Elon Musk own?
Earlier this week, Musk purchased a 9.2 percent stake in the company with Twitter announcing him as a board member only for that to fall through just a few days ago, prompting Twitter CEO Parag Agrawal to tell staff, “there will be distractions ahead.”
Below is the full text of the letter sent by Musk to Twitter, per the SEC filing:
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 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.
Elon Musk