Elon Musk has offered to buy Twitter with an offer valued at $ 43.4 billion, promising to “unlock” the potential of the social media platform by making it private.
Musk’s $ 54.20 share offer came days after he took a 9 percent stake in the company, becoming the largest shareholder, but declined an invitation to join the board.
This move will turn the technology entrepreneur into a new media baron, able to determine the future direction of a platform with 80 million followers, through which he pursues personal revenge and promotes his program.
The entrepreneur announced the offer on Thursday in documentation to the US Securities and Exchange Commission.
In a letter to the company’s board attached to the document, Musk said he had invested in the enthusiastic platform because he believed in its potential to be “a platform for free speech around the world.”
However, he added that after making his investment, he now realizes that the company “will neither prosper nor serve this social imperative in its current form.”
“Twitter needs to be transformed as a private company,” he wrote.
I made an offer https://t.co/VvreuPMeLu
– Elon Musk (@elonmusk) April 14, 2022
Musk said his offer was a 54% premium on the day he began investing in the company and a 38% premium until April 1, three days before the building of his stake went public.
However, he hinted that he could leave if the deal failed.
“My offer is my best and last offer and if it is not accepted, I will have to reconsider my position as a shareholder,” Musk wrote. “Twitter has tremendous potential. I will unlock it. “
Shares rose more than 11% in pre-market trading to about $ 51.
Twitter said its board “will carefully review the proposal to determine the course of action it believes is in the best interests of the company and all Twitter shareholders.”
The offer comes after a few turbulent days for the company, which shook its management and staff.
Musk acquired its shares on March 14, but did not publicly announce the case until April 4, exceeding the 10-day limit required by federal commercial law for investors to notify the SEC.
Following the news that Musk is becoming the largest shareholder on Twitter, the company’s shares rose by 27 percent. A day later, Twitter CEO Parag Agrawal announced that Musk would join his board of directors. “Through conversations with Elon in recent weeks, it has become clear to us that he will bring great value to our board,” he said at the time.
Musk turned the course on Monday and said he would not join the board after spending the weekend criticizing the platform and offering new features, in a series of tweets that were subsequently deleted.
A tweet that Musk “liked” on the platform suggested that Elon “became the biggest shareholder in free speech” and “told him to play well and not to speak freely.”
Tesla’s CEO previously used Twitter to announce his intention to make the electric car maker private in 2018 in a post that said: “I’m considering taking Tesla’s private price of $ 420. Funding provided. “
The proposal was abandoned only weeks later, after discussions with shareholders.
Musk and Tesla paid a fine to the SEC in an agreement after they were accused of fraud in securities for the post. The company’s lawyer is now required to approve all Musk tweets containing information material to Tesla – a decision he is trying to overturn.
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