Tech billionaire Elon Musk made a surprising offer to buy Twitter. He believes that the platform needs to be “transformed.”
After valuing the company at $41.4 billion, Tesla’s CEO has offered to buy all the remaining shares in Twitter that he doesn’t own for $54.20 per share.
Which is an 18% premium over its closing price Wednesday. And 38% premium over the closing price on April 1, before Musk disclosed that he bought 9.2 percent of Twitter’s stock.
According to the SEC filing, the offer that Musk made was his “best and final offer”.
Hw also said that if the company didn’t accept it he would have to reconsider his position as a shareholder.
In a letter to the company Wednesday night, Musk made his offer by saying,
“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. 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.”
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Musk addressed his letter not to Twitter CEO Parag Agrawal, but to Bret Taylor, the chair of the company board.
On Thursday, the platform issued a statement confirming the offer. Twitter’s board would review the proposal carefully
“to determine the course of action that it believes is in the best interest of the company and all Twitter stockholders.”
Some Analysts said that it will be difficult for the company to reject Musk‘s bid at the price he is offering.