South African-born American entrepreneur Elon Musk has made an audacious attempt to take over Twitter in a $43 billion dollars bid weeks after he became the company’s largest shareholder, owning 9% and turning down an invitation to join the company’s board.
Everything You Need to Know About Elon Musk Offer to Buy Twitter:
Elon Musk has offered a purchase price of $54.20 per share for Twitter. Twitter has suggested that it will investigate Elon Musk’s acquisition bid.
Elon Musk stated that his bid to acquire Twitter for $54.20 per share represented a 54% premium to the share price on the day before his investment in the company in late January.
In a filing with the Securities and Exchange Commission, Mr. Musk suggested that this was a “best and last offer,” reflecting a 54% premium over the day before he began investing in the company in late January. The corporation would have a market capitalization of approximately $43 billion.
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Mr. Musk wrote in the filing that “I lack faith in management” and that he was unable to effect the improvements he desired in the public market.
According to a letter written to Twitter’s chair, Bret Taylor, on April 13 and included in the filing, Mr. Musk will “need to reassess my status as a stakeholder” if the offer is not accepted, according to the letter. “Twitter possesses enormous promise.” “I’ll unlock it.”
Twitter’s stock was up 11% in premarket activity. The closing price on Wednesday was $45.85. According to the filing, Morgan Stanley is Mr. Musk’s financial consultant on the idea.
According to a regulatory filing on April 4, Mr. Musk, the billionaire CEO of Tesla and SpaceX and the world’s richest man, purchased a 9.2 percent share in Twitter. The following day, Twitter announced that Mr. Musk would join its board of directors, but by the end of the week, he had declined.
Mr Musk’s Vision For Twitter
“I invested in Twitter because I believe it has the potential to become the global platform for free speech, and I believe that free speech is a societal requirement for a functioning democracy,” Musk wrote in an April 13 letter to Mr. Taylor.
However, since making my investment, I’ve come to believe that the company, in its current form, will neither grow nor fulfill this societal need, “he added. “Twitter should be spun off as a standalone business.”
Since Mr. Musk’s stake became public on April 1, Twitter’s stock price has increased by 16 percent. I’ve gone forward to the conclusion. ‘ What Elon Musk just mentioned in connection with his bid to acquire Twitter Elon Musk disclosed his proposal to take over Twitter in a filing with the Securities and Exchange Commission.
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Mr. Musk sounded a lot like the activist investor he has become in recent weeks in his Securities and Exchange Commission filing announcing his intention to acquire Twitter and convert it to a private corporation, stating that he was not “playing the back-and-forth game.”
“I’ve proceeded directly to the conclusion,” he continued. “It’s a high price,” he said, “but your stockholders will like it.”
Mr. Musk proposed a cash purchase of the company at a price of $54.20 per share.
In a section of his filing, a 13D, which must be made to the Securities and Exchange Commission when an individual purchases a specific amount of a company’s stock, Mr. Musk reiterated his concerns about free speech on the site and expressed distrust for Twitter’s current leadership.
If the offer fails, given my lack of trust in management and my belief that I am unable to drive the necessary transformation in the public market, “Mr. Musk stated in the filing.” “This is not a threat; in the absence of necessary reforms, it is simply not a viable investment.” And such reforms will be impossible to implement unless and until the corporation is privatised. “
About Elon Musk
Elon Musk is a South African-born American entrepreneur who co-founded PayPal and established SpaceX, a launch vehicle and spaceship manufacturer. He was also one of the original major investors and the CEO of the electric car company Tesla.
Mr. Musk, who has more than 82 million Twitter followers, has been rather quiet in recent days. Shortly after the file was made public, he published a link to it: “I placed a bet.
About Twitter
Twitter is a microblogging and social networking website based in the United States that allows users to send and receive messages known as “tweets.” Unregistered users can only read tweets that are publicly visible, while registered users can write, like, and retweet them.