Elon musk twitter | Elon Musk is offering to buy Twitter for $43 billion in cash
Last week, Elon Musk became Twitter’s largest shareholder. Tesla and the SpaceX CEO were about to join Twitter’s board – he wasn’t there then.
The world’s richest man is offering to buy the company for $ 43 billion in cash, according to a regulatory filing on Wednesday.
“I made an offer,” Musk tweeted to his 81 million followers on Thursday.
Musk says he believes in Twitter’s promise to be a forum for free speech, but he doubts its management’s ability to carry out that purpose and believes it should be “converted” into a private corporation.
“Twitter has tremendous potential. I’ll unlock it,” he said in the filing.
“My proposal is my best and final proposal,” Musk concluded, “and if it is not accepted, I will have to reevaluate my status as a shareholder.” He holds more than 9% of Twitter’s stock, and some experts believe that if he sells it, it would cause a dramatic sell-off.
Twitter has confirmed that it has received an “unsolicited” offer from Mask.
In a statement, the company said its board would “carefully review the proposal to set out measures that it believes are in the best interests of the company and all Twitter stockholders.”
The offer of .20 54.20 per share of Musk was 38% higher than the stock price of Twitter the day before the announcement of its investment and 18.2% higher than the closing price on Wednesday. Twitter stocks rose less than 1% early Thursday afternoon, suggesting investors may be skeptical of the mask’s bid.
Dan Ives, an analyst at Wedbush Securities, wrote in a note to clients that he hoped the mask would succeed.
“It would be difficult for another bidder/consortium to emerge and the Twitter board would be forced to accept this bid and/or run an active process to sell Twitter,” Ives said.
But, he noted, there are unanswered questions, including how Musk will balance his time as CEO of two other companies, Tesla and SpaceX.
It is also unclear how Mask will finance his cash offer. Most of his $ 266 billion assets are in Tesla shares. Selling some of its shares could affect Tesla’s valuation.
Takeover Bid is the latest twist in a wild two weeks for billionaires and social media platforms.
On April 4, Musk revealed that he was buying shares of Twitter and became its largest investor. (Earlier this week, a Twitter shareholder filed a securities fraud lawsuit against Musk, alleging that the cost of his shares was disclosed to investors late and saved Musk about 14 143 million.)
Tesla’s CEO is a well-known Twitter user and a vocal critic, so his investment immediately raised questions about his motives. A few weeks before the publication of his partnership, he publicly questioned Twitter’s commitment to freedom of speech and thought about creating a rival social network.
The next day, Twitter CEO Parag Agarwal announced that Musk would join the company’s board – and he agreed to limit how much more Twitter stock he could buy. Both men said they look forward to working together in the future of the company.
But that plan quickly fell through. Over the weekend, Musk told Twitter that he would not join the board above all, a decision that described Agrawal as “for the best.”
Before revealing about her on Sunday night, Mask spent most of the weekend advising, criticizing, and joking about Twitter. “Is Twitter dying?” In a tweet, he inquired, adding that many of the site’s most popular users, like Barack Obama and Katy Perry, seldom tweet.
He added that the company should move away from ad-supported business models, suggesting that it would turn its San Francisco headquarters into a homeless shelter, and voted for its followers to remove “w” from Twitter’s name. He later deleted many tweets.
While it’s not clear why Mask changed his mind about joining the board, in his filing Thursday, he doubled his view of Twitter’s role in society – and what it takes to realize that.
“I have invested in Twitter because I believe in its potential to be a forum for free speech throughout the world,” he stated in a letter to Twitter Chairman Brett Taylor. “However, after making my investment, I’ve come to realize that the firm, in its current form, would neither enhance or service this societal need.”
According to the filing, he told Taylor that he was “not playing the game before and after.” “I went straight to the end.”