BREAKING: Elon Musk offers to buy Twitter in hostile takeover attempt
Elon Musk is the owner of Tesla, SpaceX, and now he is offering to buy 100% of Twitter.
The richest man in the world, Elon Musk, is making his “best and final” offer to buy 100 percent of Twitter.
Musk is reportedly offering $54.20 per share in cash, representing a 54% premium over the Jan. 28 closing price and a value of about $43 billion.
Musk is offering to “acquire all of the outstanding Common Stock of the Issuer not owned by the Reporting Person for all cash consideration valuing the Common Stock at $54.20 per share.”
The proposal was delivered in a letter to Twitter on April 13th.
The billionaire first disclosed a stake of 9% on April 4. The big tech company subsequently offered a board seat to Musk which he promptly rejected.
Musk tweeted Thursday morning that he had, “made an offer.”
Musk says Twitter needs to go private to go through the changes that need to be made.
Twitter shares are up over 13 percent pre-market on the news. Tesla shares are down 1.5 percent potentially due to fears of Musk becoming distracted by his new company.
Musk is one of the only people in the world who can afford a hostile takeover of Twitter. He’s currently worth about $260 billion, compared to Twitter’s market valuation of $37 billion.
In a letter to Twitter’s board, Musk said he believes Twitter “will neither thrive nor serve [its free speech] societal imperative in its current form. Twitter needs to be transformed as a private company”
“If the deal doesn’t work, given that I don’t have confidence in management nor do I believe I can drive the necessary change in the public market, I would need to reconsider my position as a shareholder,” Musk added.
Musk has hired Morgan Stanley as his adviser for the takeover. In classic Elon Musk fashion, his offer price to Twitter includes the number 420.
Do you think Elon Musk is trying to save free speech in America? Will Twitter accept his offer? Can free speech be saved? Comment your thoughts below!