Tesla CEO Elon Musk has made a formal offer to purchase Twitter for $43 billion. Musk has filed an updated 13D with the SEC and offered $54.20 per share for 100 percent control of the social media platform.
Musk’s proposal reads as follows:
Chairman of the Board,
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.
The ongoing situation between Twitter and Elon Musk has reached new heights. Musk, the company’s largest shareholder, was recently in talks to join Twitter’s board of directors. However, the discussions surrounding this possibility ceased last week. Musk has also been very outspoken on the changes he would like to implement on the platform. However, Musk is also nefarious for his memes online. He’s been criticized for egging on his large 80 million followers.
In a statement to Twitter’s board of directors, Musk states his belief that Twitter “will neither thrive nor serve [its free speech] societal imperative in its current form. Twitter needs to be transformed as a private company.”
Additionally, Musk issued a vague threat if his offer is not accepted. “I would need to reconsider my position as shareholder,” Musk said in his statement.
Currently, Musk’s wealth is estimated at around $260 billion. Twitter’s market valuation is about $37 billion. Musk’s offer is over market value.
We’ll certainly be keeping an eye on how this situation escalates in the coming days and weeks.