The past few days have seen Elon Musk make the headline not because of Tesla or any of his other companies but because of Twitter – the micro-blogging platform founded by Jack Dorsey.
The billionaire who has been acquiring Twitter shares since recent months and now owns more than 9 percent stake in the company is offering to buy Twitter for $54.20 per share. According to him, the company needs to be transformed into a private one.
Musk’s saga with Twitter first came when he criticized the platform from being a hindrance to free speech, going as far to intimate that he might start his own social media platform just like Donald Trump.
However, the days that followed came with the announcement that the CEO had purchased the largest stake in Twitter and that he was going to join the company’s board.
Elon Musk didn’t join the board as planned and both Twitter and the billionaire failed to give specific reasons. What if this was the plan all along? What if he has been looking forward to acquiring Twitter as an alternative to starting his own platform?
According to Elon Musk, “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.” This information came in a letter he sent to Twitter Chairman Bret Taylor and disclosed in a securities filing.
Twitter’s shares which were down following the news that the CEO wasn’t joining the company’s board, soared 12 percent in premarket trading after closing at $45.85 a share on Wednesday.
“…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 and a 38% premium over the day before my investment was publicly announced,” he wrote. “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 said.
Elon Musk would be buying Twitter for about $43 billion if the company agrees to it’s terms.
