The recent Elon Musk and Twitter fiasco has taken a new turn with the SpaceX CEO offering to buy the social media platform for more than $43 billion. Twitter, in a regulatory filing on Thursday, reported that Musk had offered to buy the remaining shares of the company at $54.20 per share.
I made an offer https://t.co/VvreuPMeLu
— Elon Musk (@elonmusk) April 14, 2022
Previously, Musk announced that he would not be joining the Twitter Board of Directors after he purchased 9.2% of the company’s shares, the largest of any shareholder.
CNBC reports Twitter’s market valuation at about $37 billion, while Musk’s offer values the company at $43 billion.
In the official SEC filing, Musk stated that he invested in Twitter believing in its potential for free speech around the globe claiming that he believes “free speech is a societal imperative for a functioning democracy.”
Musk added:
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.
The filing further elaborates Musk’s plans to buy 100% of the microblogging platform for $54.20 per 763.58 million shares in cash. Musk claimed that the price was “a 54% premium over the day before [he] began investing in Twitter and a 38% premium over the day before [his] investment was publicly announced.”
The filing also highlights Musk’s plans if the deal goes south. Musk stated:
If the deal doesn’t work, given that I don’t have confidence in management nor do I believe I can drive the necessary change in the public market, I would need to reconsider my position as a shareholder … This is not a threat, it’s simply not a good investment without the changes that need to be made.
Musk also cleared that there was no further room for negotiations. He said:
It’s a high price and your shareholders will love it … 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 Chief Executive, Parag Agrawal reported that the company was evaluating its options and that it was not being “held hostage” by the offer.
Speaking at the TED2022 conference held in Vancouver, Canada, Musk shared his doubts regarding the offer, claiming “I am not sure that I will actually be able to acquire it.” The Tesla CEO also added that he had a ‘Plan B,’ if the offer was rejected, but gave no further details.
Hope that He buys it!