By Alice Seeley
After rejecting an offer of a position on Twitter’s Board of Directors, Tesla CEO Elon Musk has offered to buy Twitter for $54.20 per share in cash, or around $43 billion. This is his “best and final offer.”
Musk’s offer was revealed in a regulatory filing that he posted on Twitter on Thursday, April 14. The offer is currently non-binding and is subject to financing and other conditions.
Musk announced he wishes to purchase the social media company in order to transform it into a private company. According to Musk, the social media company needs to go private because it can “neither thrive nor serve” free speech in its current state. Musk also stated he doesn’t “have confidence in management.”
“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… Twitter has extraordinary potential. I will unlock it,” Musk wrote in a letter to Twitter Chairman Bret Taylor.
If his offer is not accepted, Musk said he would reconsider his position as a shareholder. He clarified that this is “not a threat, it’s simply not a good investment without the changes that need to be made.”
After Musk’s announcement, Twitter stocks increased 4.3% to $47.83, still below Musk’s offer price. This is a sign that some investors are doubtful the deal will go through. The company’s stock is still down from its 52-week high of $73.
In a statement responding to Musk, Twitter stated that “the Twitter Board of Directors will carefully review the proposal to determine the course of action that it believes is in the best interest of the Company and all Twitter stockholders.”
“This soap opera will end with Musk owning Twitter after this aggressive hostile takeover of the company,” said an analyst at Wedbush Securities, Daniel Ives.
Ives believes Twitter’s Board of Directors will most likely be forced to accept Musk’s offer.
