Amidst all the speculations, Elon Musk made an offer to buy 100% shares of Twitter Inc, the company that runs the microblogging social media platform Twitter. Musk, who is making news after owning the largest share of 9.2% stake in the company, claims he will ‘unlock its extraordinary potential’ after making the company his private ownership.
Musk junked down the offer for joining the board of directors of the company, which he had initially accepted after a condition was put before him that we would not be able to raise his stake beyond 15%. Now as an independent investor, Musk is keen on buying the whole of Twitter itself and making the company private.
Making an offer to buy Twitter.Inc in cash, he added, “I am offering to buy 100% of Twitter for USD 54.20 per share in case, a 54% premium over the day I began investing in Twitter and a 38% premium over the day before my investment was publicly announced.” He posted the link to the SEC filing regarding the offer, which included his communications to the company. He is seen texting Twitter board chairman saying the company should go private by this coming weekend.
“After the past several days of thinking this over, I have decided I want to acquire the company and take it private. I am going to send you an offer letter tonight, it will be public in the morning,” Musk texts. “Are you available to chat?” asks the Richest person in the world colloquially while negotiating what could be one of the most defining deals of the decade.
Elon Musk says he’s done playing it ‘back-and-forth’ and is moving straight to buy Twitter, a plan he always had at the back of his mind. He said that he does not not confidence on the Twitter management, and will reconsider his share in the company if his offer is not accepted. “If the deal doesn’t work, given that I don’t have confidence in management nor do I believe I can drive the necessary change in the public market. I would need to reconsider my position as a shareholder,” the Tesla CEO says categorically.
“This is not a threat, it’s simply not a good investment without the changes that need to be made. And those changes won’t happen without taking the company private,” Elon Musk writes. He states that this is a high-price deal and the company’s investors would love it.
Elon Musk is in safe position to easily buy 100% shares of Twitter by cash. It has to be seen how the Twitter board and management react to his offer.
