What you need to know
- Elon Musk has made an offer to buy all of Twitter.
- He offered Chairman of the Board Bret Taylor $54.20 a share, a valuation of $42 billion.
- He stated that "Twitter has extraordinary potential. I will unlock it."
Elon Musk has offered to buy all of Twitter and transform it as a private company.
In a letter filed to the SEC Musk told Bret Taylor, Chairman of the Board:
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.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.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.
Musk not only offered to make the purchase but warned that if his offer to buy the whole company was not accepted, he would be forced to reconsider the initial stake that he took in the company. He recently bought 73.5 million shares for some $3 billion and was planning to sit on the company's board before making an abrupt U-turn.
