The drama between Twitter and Tesla CEO Elon Musk took a turn today when he announced on his Twitter account he’s made an offer to buy 100 percent of Twitter in a takeover attempt. According to an updated 13D filing on Thursday with the U.S. Securities and Exchange Commission (SEC), Musk is offering a “best and final” offer of $54.20 per share in cash which is valued at $43 billion according to Bloomberg.
The past few days have seen the Tesla CEO become Twitter’s largest shareholder after purchasing a 9.2 percent stake in the company, then turning down an offer to join Twitter’s board of directors. Musk who is the world’s richest man with a worth of around $260 billion according to the Bloomberg Billionaires Index wants to take Twitter private, a company with an “extraordinary potential” and he plans to “unlock it.”
According to the SEC filing, below is the full letter addressed to Twitter Chairman of the Board Bret Taylor:
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.
Twitter board will reportedly meet at 10AM ET to discuss the proposal, according to CNBC. The board said it would review the proposal and make a decision in the best interests of all “all Twitter stakeholders.” Musk said in the SEC filing he’s willing to make the payment to own Twitter in cash but the filing did not say how he will put the $43 billion in cash together.
Twitter shares sank by 1.1 percent on Thursday amidst fears one of the platform’s controversial users will succeed in a takeover attempt. After Musk disclosed his 9.2 percent stake purchase in Twitter, Tesla shares sank 3 percent due to concerns Musk will be distracted by his Twitter takeover attempt.
Featured Image – Elon Musk by Liesa Johannssen-Koppitz/Bloomberg