Tesla CEO Elon Musk Offers To Buy Twitter For $41 Billion
Tesla CEO Elon Musk has offered to buy Twitter, a company that he is already the largest shareholder of. The offer stands at $41 billion, or $54.20 per share. The offer could be a difficult one for Twitter’s management, and its shareholders, to turn down.
In a letter filed with the SEC, Musk threatened that he would sell his existing shares if his buyout wasn’t approved — something that would surely see Twitter’s share price take a dive.
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.
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.
Twitter has extraordinary potential. I will unlock it.
Whether Musk can or cannot “unlock” any Twitter potential remains to be seen, but the real question is whether Twitter can turn the offer down without destroying its share price and being in hot water with its existing shareholders.
Twitter has confirmed that it has indeed received the offer and “will carefully review the proposal”.
Twitter, Inc. (NYSE: TWTR) today confirmed it has received an unsolicited, non-binding proposal from Elon Musk to acquire all of the Company’s outstanding common stock for $54.20 per share in cash.
The Twitter Board of Directors will carefully review the proposal to determine the course of action that it believes is in the best interest of the Company and all Twitter stockholders.