Elon Musk, the billionaire founder of Tesla Inc, has offered to buy Twitter at $54.20 per share in cash.
The amount values the social media company at $43 billion at the current price.
The development comes just days after he took a 9 per cent stake in the company; becoming its largest shareholder but rejecting a seat on Twitter’s board.
In a letter sent to Bret Taylor, Twitter chairman, and disclosed in a regulatory filing on Thursday, Musk said;
“I invested in the app as I believe in its potential to be the platform for free speech around the globe”.
“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”
“The app needs to be transformed to a private company” he said.
“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. I offered 38% premium shares 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”.
Did the app accept Musk’s offer?
“It’s meant to prevent [Musk] from completing the transaction without first negotiating with the company,” Klein explained.
Musk, the CEO of Tesla (TSLA), made the offer just days after revealing a holding of more than 9% in Twitter on April 4, and then declining an invitation to join Twitter’s board.
Twitter will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.” Morgan Stanley is advising Musk on the transaction, according to a regulatory filing.