Buzz Update Elon Musk has offered to buy a 100% stake in Twitter for $ 43 billion TOU

Buzz Update Elon Musk has offered to buy a 100% stake in Twitter for $ 43 billion


Elon Musk has offered to buy a 100% stake in Twitter for $ 43 billion

Putting an end to all speculation, Elon Musk has finally offered to buy Twitter Inc., a company that runs the microblogging social media platform Twitter. According to ReportsTesla & SpaceX have proposed to pay in cash at $ 54.20 per share for 100% of the company’s shares, valued at approximately $ 43 billion.

The world’s richest man on Thursday unveiled a proposal to take over the company negatively in a filing with the US Securities and Exchange Commission. Twitter shares have risen 18% since the announcement.

Elon Musk has previously revealed that he bought a 9.2% stake in Twitter, sparking speculation that he could take over the company. Because of his share, he was initially invited to a seat on the board of directors of the company he accepted. However he later decided not to join the board.

One of the conditions of his appointment on the board was that he could not increase his stake beyond 15%. Now as an independent investor, he does not adhere to such restrictions and has announced his offer for the entire stock of Twitter.

In a letter to Twitter Board Chairman Brett Taylor, Musk said he had invested in Twitter because he believed in freedom of speech around the world and that he believed that free speech was a social necessity for working democracy.

“However, since I made my investment, I now realize that the company does not promote or serve this social need in its current form. Twitter should be turned into a private company, ”the letter said.

Announcing his offer, he said, “As a result, I am buying 100% Twitter at 54% premium the day I started investing in Twitter and 38% premium the day before, at $ 54.20 per share. The investment has been publicly announced.” If he says his offer is the best and last offer and does not accept it, he will have to reconsider his position as a shareholder.

He said, “Twitter has extraordinary potential. I will unlock it. ”

Musk later posted a link to the SEC filing on Twitter, saying “I made the offer”.

As the richest man in the world, Elon Musk can easily buy 100% of his shares on Twitter with cash. And the Twitter board should see how the management responds to his offer. However, if the board refuses, he can buy all the available Twitter shares in the market and get enough shares to take over the board. Musk hired Morgan Stanley as his advisor for the takeover.

The musk offer price is higher than the stock’s recent prices, which is lower than the company’s high prices. The Twitter share reached $ 77 last year, so, some shareholders may not want to sell at $ 54.20, so the bid may fail.

if you want to read this article from the original credit source of the article then you can read from here.

Leave a Reply