Tesla and SpaceX CEO Elon Musk offered to purchase 100% of the shares of the social network Twitter for $ 54.2 per share – an amount that reflects a value of $ 43 billion. Yesterday, the share price stood at $ 45.85, so Musk’s offer reflects a premium of 18.2%. This is a premium of 54% compared to the price on January 28, when Musk started buying the company’s shares. Shares of Twitter soared about 12% in early trading on Wall Street at this time.
Musk claims that this is “his best and final proposal” to soften the social network, further noting that the network has huge potential and that he will be the one to open it.
I made an offer https://t.co/VvreuPMeLu
– Elon Musk (@elonmusk) April 14, 2022
The Twitter board confirmed that it had accepted Musk’s offer, emphasizing in the announcement that the company was not looking to be sold and a third party approached it with an offer. The directors will carefully review the proposal to determine the course of action for the benefit of the company and Twitter shareholders.
“Twitter has extraordinary potential”
More than a week ago, Elon Musk recalled announcing that he had acquired a 9.2% stake in Twitter for about $ 3 billion. First, the social network announced that Musk has joined the company’s board of directors, and will serve in the position until 2024. About three days ago, Musk changed his mind and announced – I will not join the Twitter board of directors.
In a letter sent by Musk to Twitter chairman Brett Taylor, as submitted in the regulatory document to the U.S. Securities and Exchange Commission, Musk wrote: “I have invested in Twitter because I believe in its potential to be the platform for freedom of expression worldwide and I believe freedom of expression is a social imperative for functioning democracy. However, since I made the investment, I now understand that the company will not prosper and will not serve this social imperative in its current machine. Twitter needs to be turned into a private company. ”
According to Musk, this is the best and final offer he can make, and if it is not accepted “I will have to reconsider my position as a shareholder. Twitter has extraordinary potential, I will crack it”.