Elon Musk Offers To Buy Twitter In Takeover Attempt

Story Highlights
  • Elon Musk is making his “best and final” offer to buy 100 percent of Twitter.
  • Musk says Twitter needs to go private to go through the changes that need to be made.
  • Twitter’s market valuation is about $37 billion.

The Twitter and Elon Musk saga is far from over as Elon Musk has made an offer to buy Twitter in an SEC filing. The billionaire has said he is willing to pay $54.20 per share in cash. It would value the social network at $43.4 billion. “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,” Elon Musk wrote in an email to Bret Taylor, Twitter’s chairman of the board.

The email is reproduced in today’s SEC filing. “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% of Twitter for $54.20 per share in cash, a 54% premium over the day before I began investing in Twitter. 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.

In pre-market trading, Twitter shares are currently trading at $50.97 per share, an 11.97% jump compared to yesterday’s closing price. On April 4th, Twitter confirmed that Musk had acquired a significant stake in the social network. By purchasing a 9.2% share of the company, Musk became Twitter’s largest shareholder.

As a board member, Musk wouldn’t be allowed to own more than 14.9% of the company. But Twitter CEO Parag Agrawal later announced a major reversal. Musk told the company that he would not join the board. Since then, there has been a ton of speculation about Musk’s next move. Many people thought the billionaire would start a hostile takeover after renouncing the board seat.

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