Wednesday, May 18, 2022

Elon Musk offers to buy Twitter for $43 billion in cash

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Elon Musk offers to buy Twitter for $43 billion in cash, Elon Musk offered to buy Twitter for $54.20 a share in cash, or about $43 billion, according to documents filed with the Securities and Exchange Commission.

“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,” Elon Musk wrote in an email to Bret Taylor, Twitter’s chairman of the board and Sales force Co-Chief Executive. The email is reproduced in today’s SEC filing. “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,” he added.

Twitter shares are currently trading at $50.97 a share in pre-market trading, up 11.97 percent from yesterday’s closing price.

Musk purchased a big stake in Twitter on April 4th, according to Twitter. Musk became Twitter’s largest shareholder after purchasing a 9.2 percent stake in the firm.

The next day, Twitter announced that Elon Musk, the entrepreneur most known for his work at Tesla and SpaceX, would join its board of directors. Musk wouldn’t be permitted to own more than 14.9 percent of the firm as a board member.

However, Twitter’s CEO, Parag Agrawal, later revealed a big change of heart. Musk informed the corporation that he would not be joining the board of directors. There has been a lot of speculation about Musk’s next move since then.

Many speculated that after resigning from the board of directors, the billionaire would launch a hostile takeover. Musk is currently the wealthiest person in the planet. He is currently worth $273.6 billion, according to Forbes. Musk would be making a large investment if he bought Twitter, but it is possible.

Twitter hasn’t publicly responded to the purchase offer yet.

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