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Tesla CEO Elon Musk has made a formal offer to purchase Twitter outright for $43 billion. Musk has filed an updated 13D with the SEC, offering $54.20 per share for 100 percent control of the social media platform.
The filing with the US financial regulator appears to show text and/or voice messages from Musk to Twitter’s board, showing that he had raised the idea at the weekend that the business should go private.
Musk had been invited to join the board, but Twitter announced on Sunday he had decided against it.
Musk’s proposal reads as follows:
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.
Currently, Musk’s wealth is estimated at around $260 billion. Twitter’s market valuation is about $37 billion, so Musk’s offer is above market value.
Musk has also been very outspoken on the changes he would like to implement on the platform. However, Musk is also nefarious for his memes online. He’s been criticized for egging on his large 80 million followers.
It recently emerged that Musk was Twitter’s biggest shareholder after he built up a large stake in the firm.
Twitter issued a statement today confirming the offer:
Twitter, Inc. today confirmed it has received an unsolicited, non-binding proposal from Elon Musk to acquire all of the Company’s outstanding common stock for $54.20 per share in cash.
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.