Elon Musk makes offer to buy Twitter for more than $43 billion and take the company off the Stock Exchange, saying the company needs to change. Musk offered to acquire all the shares of Twitter that he does not already own for $54.20 per share.
Elon Musk has made an offer to buy Twitter and take the company off the Stock Exchange, saying the company needs to change.
According to a United States Securities and Exchange Commission (SEC) document, Musk offered to acquire all the shares of Twitter he does not already own for $54.20 per share, valuing the company at $43.4 billion. Dollars.
Elon Musk makes offer to buy Twitter for more than $43 billion
That represents a 38% premium over the closing price on April 1, the last trading day before Musk revealed he had become Twitter’s largest shareholder.
Musk said the cash offer was his best and last offer, adding that if it is not accepted, he will have to reconsider his position as a shareholder.
The CEO of Tesla and SpaceX sent an offer letter to the company on Wednesday night, according to the SEC filing.
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“I invested in Twitter because I believe in its potential to be the platform for freedom of expression around the world, and I believe that freedom of expression is a social imperative for a democracy to work. However, since making my investment, I now realize that the company will not prosper or meet this social imperative in its current form. Twitter must become a private company,” he said in a letter he sent to Twitter.
The letter was addressed to Bret Taylor, Twitter’s chairman of the board. In the letter, Musk concludes: “Twitter has extraordinary potential. I will unlock (its potential).”
Twitter issued a statement Thursday confirming that it had received the offer. The company said its board of directors would carefully review such a proposal to determine the course of action that would be in the best interest of the company and all of Twitter’s shareholders.
Shares of Twitter soared as much as 13% but soon pulled back to post a gain of around 7%, suggesting investors were doubtful the offer would be accepted.
It should be noted that to make a profit by offering such a high offer, Musk would have to make Twitter take more action to generate subscriber revenue and cut costs. And it is that Musk’s commitment to use the company to promote greater freedom of expression does not do much to generate more money.
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