Tesla CEO Elon Musk did precisely what many have not only speculated about but hoped for after the world’s richest man became Twitter’s largest shareholder; he made an offer on Wednesday to buy the social media giant.
The billionaire offered to buy Twitter for $41.3 billion, according to the Daily Mail, which cited regulatory filings, justifying the move in a letter to Bret Taylor, the Chairman of the Board, by saying his current 9.2 percent stake in the company is “simply not a good investment without the changes that need to be made.”
To that point, shares of Twitter jumped nearly 12 percent before Thursday’s market open.
“Musk’s offer price of $54.20 per share represents a 38 percent premium to the closing price of Twitter’s stock on April 1, the last trading day before the Tesla CEO’s over 9 percent investment in the company was publicly announced,” the British newspaper reported. “Twitter Inc. said in a regulatory filing on Thursday that Musk, who is the company’s biggest shareholder, provided a letter to the company on Wednesday that contained a proposal to buy the remaining shares of Twitter that he doesn’t already own.”
Musk sent his proposal to purchase the company in a letter to Twitter Inc. on Wednesday.
Will all of those who suggested @elonmusk might be going for a hostile takeover of twitter take a bow? Looks like Musk has offered to buy 100% of Twitter for $54.20 per share, valuing the company at $41.3B, in a takeover bid. His letter: pic.twitter.com/crXCb4JFQY
— 🚨 Katherine Brodsky (@mysteriouskat) April 14, 2022
“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,” he wrote, according to the Daily Mail. “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 percent of Twitter for $54.20 per share in cash, a 54 percent premium over the day before I began investing in Twitter and a 38 percent premium over the day before my investment was publicly announced,” Musk said.
“My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder,” he added. “Twitter has extraordinary potential. I will unlock it.”
The move comes after Musk rejected an offer to join Twitter’s board of directors, which was seen as an indication that he intended to take over the company as members are limited to just under 15 percent.
Forbes reported this surprising fact about the proposal: “Musk’s offer of $54.20 may be a dig at the SEC which had previously pulled him up for indicating that he wanted to take Tesla private at $420 per share. At the time, the regulator noted that the $420 per stock offer — a 20% premium on Tesla’s stock price at the time — was a reference to marijuana and Musk’s belief ‘that his girlfriend would be amused by it.'”
News of the proposal is already showing great potential for paying bonus dividends, as seen in a tweet from rabid left Florida zealot Pam Keith:
Bye Felicia. pic.twitter.com/N9nMJvaFsh
— Ian Miles Cheong (@stillgray) April 14, 2022
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Tom Tillison grew up in Maryland before moving to Central Florida as a young teen. It is in the Sunshine State that he honed both his passion for politics and his writing skills. Tillison also contributes to BizPac Review.
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