Tesla CEO Elon Musk has offered to buy Twitter, saying the social media platform, which he criticizes for violating the principles of free speech, should be transformed into a private company.
Twitter Inc. said in regulatory papers Thursday that Musk, currently the company’s largest shareholder, has offered to buy the rest of Twitter’s shares, which he does not yet own, at $ 54.20 per share, an offer worth more than $ 43 billion dollars.
Musk called this price his best and latest bid, although he did not provide details on funding. The offer is non-binding and subject to funding and other conditions.
“I invested in Twitter because I believe in its potential to be a platform for freedom of speech around the world and I believe that freedom of speech is a public imperative for a functioning democracy,” Musk said in the document. “However, since I made my investment, I now realize that the company will neither thrive nor serve this social imperative in its current form. Twitter needs to be transformed as a private company. “
Twitter has said it has received Musk’s offer and will decide whether it is in the best interests of shareholders to accept or continue to operate as a publicly traded company.
Analyst Daniel Ives of Wedbush said in a client note that he believed “this soap opera will end with Musk owning Twitter after this aggressively hostile takeover of the company.” He said it would be difficult for other candidates or a consortium to come out, and said the Twitter board was likely to be forced to accept Musk’s offer or start a process to sell the company.
Musk has revealed in regulatory documents in recent weeks that he has been buying shares in almost daily lots since January 31, eventually with a stake of about 9 percent. Only Vanguard Group’s package of mutual funds and ETFs controls more shares on Twitter.
WATCH Musk’s share on Twitter raises questions about his plans:
Elon Musk has become the largest shareholder on Twitter, raising questions about the motive
With an unexpected move, Tesla CEO Elon Musk acquired a 9.2% stake in Twitter – becoming the company’s largest shareholder in social media. Musk has not made public a motive, but some experts say they are worried he could use his share to change the tone of Twitter. 2:02
The billionaire has been a staunch critic of Twitter in recent weeks, largely because he believes he doesn’t live up to the principles of free speech. The social media platform has angered supporters of Donald Trump and other far-right political figures whose accounts have been suspended for violating content standards for violence, hatred or harmful misinformation. Musk also has a history of his own tweets causing legal problems.
After Musk announced his stake, Twitter quickly offered him a seat on the board, provided he did not own more than 14.9% of the company’s stock, according to documentation. But he said five days later that he had refused.
He did not explain why, but the decision coincided with a series of already deleted tweets from Musk proposing major changes to the company, such as removing ads – the main source of revenue – and turning the San Francisco headquarters into a homeless shelter. Musk left several clues on Twitter about his thinking, such as “liking” a tweet that summarizes events, with Musk moving from “the largest shareholder to free speech” to “telling him to play well and not speak freely.” .
Huge follow-up
Musk’s 81 million followers on Twitter make him one of the most popular figures on the platform, rivaling pop stars such as Ariana Grande and Lady Gaga. But his fruitful tweeting has sometimes led him to problems with the SEC and others.
In 2018, Musk and Tesla agreed to pay $ 40 million in civil fines and Musk to approve his tweets from a corporate lawyer after he tweeted that he had the money to make Tesla private at $ 420 a share. That didn’t happen, but the tweet made Tesla’s share price jump. Musk’s latest problem with the SEC may be its delay in notifying regulators of its growing share of Twitter.
Musk described himself as an “absolutist of freedom of speech” and said he did not think Twitter adhered to the principles of freedom of speech – an opinion shared by Donald Trump’s followers and a number of other right-wing political figures who had their accounts suspended due to violating Twitter content policies.
Shares of Twitter jumped 11% before the market opened. The stock is still down from its 52-week high of about $ 73. Shares of Tesla, the electric vehicle maker Musk heads, fell about 0.9 percent.
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