Tesla CEO and SpaceX founder Elon Musk has offered $41 billion in cash to take over Twitter. He wants to take the social media company private to ensure it is able to thrive and “be the platform for free speech around the globe.”
The move comes less than two weeks after Musk spent $3 billion to become Twitter’s largest shareholder.
Musk is ready to pay a premium to acquire Twitter
The billionaire is offering $54.20 per share to make Twitter private again, which is a 54% premium before the day he first invested in the company.
In a letter submitted to the Securities and Exchange Commission (SEC), Musk says that since making his investment in the social networking platform, he has realized “the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.” He further believes the platform has “extraordinary potential” that he can unlock.
I made an offer https://t.co/VvreuPMeLu
— Elon Musk (@elonmusk) April 14, 2022
His $41 billion offer is final, and if it is not accepted, he will reconsider his position as the company’s largest shareholder.
Below is what Musk said in the SEC filing:
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.
Musk is Twitter’s largest shareholder
Musk initially spent $3 billion to acquire a staggering 73,486,938 shares and became the company’s largest shareholder. He was all set to join Twitter’s board of directors and even teased an edit button for the platform. Ultimately though, the Tesla and SpaceX co-founder turned down the board of directors seat without giving a clear reason.
If Musk had accepted the position, he would not have been able to launch a hostile takeover of the company as he is doing now.
Elon Musk is the world’s richest person globally, with a net worth of over $265 billion. However, it is unclear how he plans to fund his $41 billion cash acquisition of Twitter.