Twitter is going through an eventful time right now. Elon Musk recently became Twitter’s largest shareholder, turned down the offer to be on its board, and has now offered to buy Twitter. In a filing with the Security Exchange Commission (SEC), Musk has offered to pay $54.20 per share. Interestingly, the mention of 420 is a reminder of Musk’s infamous value of Tesla Motors, which he proposed for whenever it goes public. Here are the details.
Elon Musk Proposes to Buy Twitter
As part of a “hostile bid,” Musk has a non-binding proposal to acquire all of the company’s outstanding common stock at around $43 billion, which he considers the “best and the final offer.“
The filing suggests that this represents a 58% premium over the closing price of the Common Stock on January 28, 2022, and an 18% premium over the closing price as of yesterday. In a letter to the SEC chairman, Musk suggests that Twitter needs to become a private company in order to thrive and this apparently shall happen once Musk acquires it.
The letter reads, “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 into a private company.“
It is claimed that if his offer is denied, Musk will reconsider his position as a shareholder. Elon Musk also took to Twitter to announce that he “made an offer.”
Twitter has also confirmed that it has received the proposal and has revealed that the Board of Directors will review it and come up with a decision that serves the interest of the company and its stockholders.
This comes after Musk recently declined the offer to become a part of the Twitter board but still remains its largest shareholder by securing a 9.2% share. It remains to be seen how this proposal is taken by Twitter and whether or not Musk’s wish of acquiring the micro-blogging platform to make the desired changes is fulfilled. We will let you know once we get more details on this. So, stay tuned, and do tell us how you feel about this in the comments below!