Elon Musk moves quick!
The billionaire has just made an offer to buy Twitter, tweeting this morning that he’s made an offer:
I made an offer https://t.co/VvreuPMeLu
— Elon Musk (@elonmusk) April 14, 2022
According to the Daily Mail, Musk has offered over $41 billion for the company:
Elon Musk has offered to buy Twitter for $41.39billion saying it ‘has extraordinary potential’ and ‘I will unlock it’, a regulatory filing showed on Thursday.
Musk’s offer price of $54.20 per share represents a 38 percent premium to the closing price of Twitter’s stock on April 1, the last trading day before the Tesla CEO’s over 9 percent investment in the company was publicly announced.
Twitter Inc. said in a regulatory filing that Musk, who is the company’s biggest shareholder, provided a letter to the company on Wednesday that contained a proposal to buy the remaining shares of Twitter that he doesn’t already own.
In the letter to the Chairman of the board, which is contained in the SEC document linked in Elon’s tweet, Musk explains that Twitter needs to be transformed and if his offer is rejected, he may pull out as a shareholder:
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.
Musk noted that “reconsidering his position as a shareholder” is not a threat, but “it’s simply not a good investment without the changes that need to be made.”
He also indicated that those changes would include taking the company private.
Musk added he’s not in this to play games, that he’s just straight to the end and says that he’s offering a high price and that Twitter’s shareholders “will love it.”
I hope he succeeds.