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Tesla and SpaceX Boss Elon Musk offers to buy Twitter a little over a week after revealing a sizable investment in the social media giant.
Elon Musk has offered to buy Twitter (NYSE: TWTR) for $54.20 a share, or about $43 billion, to “transform” the microblogging platform. Musk, who currently helms electric vehicle manufacturer Tesla and aerospace player SpaceX, said:
“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.”
Details of Musk’s Twitter Takeover Attempt
The outspoken billionaire intends to transform Twitter into a private company just over a week after first revealing a 9.2% stake in the company. In a recent letter sent to Twitter Chairman Bret Taylor, Musk emphasized the need for Twitter to go private. The Tesla CEO believes that this would help Twitter become better equipped to espouse the values of free speech. In his letter Musk stated:
“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.”
In addition, the billionaire – and current world’s richest according to Forbes, left no wiggle room for a counter proposition from Twitter. Furthermore, Musk also suggested he may liquidate his stake in the company if rejected.
“My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder,” said Musk.
Following the development, shares of Twitter jumped 12% in premarket trading after closing at $45.85 a share the day before. However, the social media giant’s stock is still trading below its 52-week high of around $73.
In response to Musk’s offer to buy, Twitter released a statement stating that it would “carefully review the proposal to determine the course of action”. Furthermore, the Jack Dorsey-founded platform also stated that whatever decision it made would be in the best interest of the company and its shareholders.
Elon Musk Wants to Buy Twitter to Promote Free Speech
Musk’s latest play for total control of Twitter underscores his commitment to promoting the concept of free speech. As he summed up in his letter to the chairman of the company’s board, “Twitter has extraordinary potential. I will unlock it”. In addition, the perceived directness of Musk’s ambitions suggests how much he believes he can impact the company.
In the past, Musk has been open in his criticism of Twitter. The CEO has tackled the social media platform about its principles of free speech. Musk has previously polled people on the platform to see if they agree. In addition, the South African-born businessman also suggested that he may build an entirely new social media platform from scratch.
Currently sitting on top of the global billionaires’ list, Musk has a net worth of around $260 billion.