Saturday, May 21, 2022

Elon Musk Offers to Buy Twitter, Calls Company ‘Needs to be Transformed’

Elon Musk believes Twitter has tremendous potential and that he is the right person to help make that happen.

In a surprising turn of events, Elon Musk offers to buy Twitter. In a statement released earlier today, Musk called the company “a great platform but it needs to be transformed.” He went on to say that he believes Twitter has tremendous potential and that he is the right person to help make that happen. The offer stands at $54.20 per share, a 54% premium over yesterday’s stock price. This would value the company at approximately $43 billion.

Elon Musk Offers to Buy Twitter, Calls Company 'Needs to be Transformed'
Elon Musk Offers to Buy Twitter, Calls Company ‘Needs to be Transformed’

According to the Securities and Exchange Commission filing, Mr. Musk said he would “need to reconsider his position as a shareholder” if the offer isn’t accepted. “Twitter has enormous potential. I will unlock it,” he added in the letter dated April 13 and included in the document.

Elon Musk offers to Buy Twitter

Elon Musk offers to Buy Twitter with a Tweet

Here’s what Elon Musk offered to Twitter according to Sec.

“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.

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, and a 38% premium over the day before my investment was publicly announced. My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder.

Twitter has extraordinary potential. I will unlock it.”

Sec

Musk is one of the world’s richest men, with a net worth estimated at $274 billion. He is one of just a few individuals with enough cash on hand to finance a private buyout of Twitter. Musk has enlisted the investment bank and financial services firm, Morgan Stanley, to assist him in his takeover bid.

The 420 code is a reference to cannabis, according to the ad. When Musk announced he would take his electric car company Tesla private in 2018, he offered to pay $420 per share for the shares he didn’t already own, claiming that “funding was secured.”

Elon Musk rises as the major stakeholder

On April 4, it was confirmed that Musk had acquired a substantial stake in the social network. By purchasing a 9.2 percent stake in Twitter, Musk became the company’s largest shareholder.

The following day, Twitter revealed that the entrepreneur known for his work at Tesla and SpaceX would be joining the board of directors. Musk won’t be allowed to own more than 14.9% of the firm as a board member.

While many of us were still scouring the internet for news on Musk’s recommendation, Twitter CEO Parag Agrawal announced a major change. Musk informed the firm he would not serve on the board. Since then, there’s been a lot of discussion about what Musk will do next.

After renouncing his board membership, many people believed Musk would launch a hostile takeover. Musk is currently the world’s wealthiest man, according to Forbes. He has a net worth of $273.6 billion, according to Forbes. It is certainly possible for Musk to buy Twitter because it is a significant investment for him.

Popular Tweets about Elon Musk buy out offer to Twitter

We will have to wait and see what happens next in this developing story. Stay tuned for more updates!

Twitter has been a hotbed of activity lately with the addition of Jack Dorsey as CEO and now this potential takeover by Elon Musk. Only time will tell what will come of these events but one thing is for sure, Twitter is certainly on the minds of many people right now. What do you think? Let us know in the comments below!

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