Tesla CEO Elon Musk has made an offer to buy Twitter. This followed after he became convinced that the social media platform did not want to work in accordance with the principles of free speech.
Twitter Inc. said in a regulatory report Thursday that Tesla CEO Elon Musk, currently the company's largest shareholder, offered to buy the remaining shares of Twitter he does not already own at $54.20 per share, more than $43 billion.
Musk, in turn, in a 13D filing with the U.S. Securities and Exchange Commission on April 13, also announced his offer to buy Twitter.
"On April 13, 2022, the Reporting Person delivered a letter to the Issuer (the “Letter”) which contained a non-binding proposal (the “Proposal”) to acquire all of the outstanding Common Stock of the Issuer not owned by the Reporting Person for all cash consideration valuing the Common Stock at $54.20 per share (the “Proposed Transaction”). investing in the Issuer, and a 38% premium over the closing price of the Common Stock on April 1, 2022, the trading day before the Reporting Person's investment in the Issuer was publicly announced."
I made an offer https://t.co/VvreuPMeLu— Elon Musk (@elonmusk) April 14, 2022
In addition, Musk turned to Bret Taylor, Twitter Chairman of the Board, with a letter in which he personally explained his view of the social network and attitude towards it. He explained that he invested in Twitter because he believes in its potential "to be the platform for free speech around the globe." Musk himself is an ardent supporter of free speech and considers it "a societal imperative for a functioning democracy."
Initially, the head of Tesla bought a 9.1% stake in Twitter, becoming the company's largest shareholder. He was also invited to the Twitter Board of Directors, but later he turned down the seat. This happened because the social network's board showed their unwillingness to change in order to become a platform where free speech would flourish. Musk explained this in his letter:
"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."
Musk is a very active Twitter user, with millions of his followers using the social network just because he is on it. Musk has repeatedly stressed the problem of free speech on Twitter and it was the desire to solve it that became the main factor in his participation in the company, but it seems that this intention was not accepted positively by the leadership of the social network.
The free speech campaigner continues to believe that Twitter has extraordinary potential and is committed to unlocking it. Musk is sincere in this and it is his passionate desire to achieve this goal that is the key to the further prosperity and success of the social network.
"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."
© 2022, Eva Fox | Tesmanian. All rights reserved.
We appreciate your readership! Please share your thoughts in the comment section below.
About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.