NEW DELHI – Elon Musk, the CEO of Tesla, proposed to acquire Twitter for $41 billion in cash on Thursday. Only days after rejecting to join Twitter’s board of directors.
Musk stated in a letter to Twitter chairman Bret Taylor. That the firm has to go private to see significant reforms.
"It's been a while since I made my investment. "I've recognized that the company, in its existing shape. Will not be able to flourish or meet this societal need." Musk scribbled his thoughts on a piece of paper. Twitter, as a private company, needs to reform."
Musk’s offer price was $54.20 per share. According to a regulatory filing on Thursday. The price marks a 38 percent premium to Twitter’s April 1 closing price. On the penultimate trading day before the Tesla CEOs. Moreover, 9% of Tesla’s shares became made public.
Musk is now Twitter’s largest shareholder.
He went on to say that if Twitter rejects his proposal. The Tesla CEO would have to revaluate his position as a shareholder as well.
"If it is not accepted, my offer is my best and final offer," Musk stated. As a stockholder, I will need to reconsider my stance."
Musk’s newest move toward Twitter comes days. After he declined a position on the microblogging platform’s board of directors. following his use of a 9.2% interest in the company.
According to a filing, Twitter offered Musk a seat on its board of directors. On the condition that he could not own more than 14.9% of the company’s outstanding stock. After 5 days, though, Musk turned down the offer.
"I invested in Twitter because it has the potential to be a global forum for free expression. And free speech is a social essential for a functioning democracy." Musk said in a regulatory filing with the Securities and Exchange Commission (SEC).
Twitter and Musk
The Tesla CEO has been in the news a lot lately because of his social media posts. Some of which have sparked debates.
Musk, the world’s richest man, has more than 80 million Twitter followers.
Some of his tweets, particularly those on bitcoin. Which caused the digital currency’s price to skyrocket. Producing large swings in Tesla’s stock price.
Musk has also faced a limited number of lawsuits and investigations as a result of his tweets.
When Musk’s brother, Kimbal Musk, got accused of violating insider trading rules. The Securities and Exchange Commission of the United States has opened an investigation. Musk surveyed his Twitter followers the day before he sold $108 million worth of Tesla shares. On whether he should sell a 10% stake in the company.
The Securities and Exchange Commission reached an agreement with the company in 2018. He promised to have legal counsel review his public comments. On the company’s finances and other topics. He is first fined $40 million, and his tweets must get vetted by a business lawyer.
On November 16, 10 days following Musk’s poll, the SEC issued a demand for material about data.
Last month, Musk argued that Twitter’s inability. To adhere to free speech norms is harmful to democracy and asked users if a new platform was necessary.
Musk made a stir after announcing his Twitter investment by conducting a poll asking users whether they want an edit button or not.
He recently asked if the social media platform was “dying” and singled out people like musician Justin Bieber, who has a large following but seldom posts.
"Most of these 'top' accounts tweet infrequently and publish very little material," the Tesla CEO wrote with a list of the ten most popular profiles, which includes himself at number eight with 81 million followers.
“Is Twitter doomed?” he wondered.
Musk also joked about dropping the “w” from Twitter’s name and transforming its San Francisco headquarters into a homeless shelter “because no one shows there anyhow” in other weekend tweets.
He also urged that Twitter’s major source of revenue, advertisements, be removed.
Musk’s proposal would be ‘seriously reviewed’ by the board, according to Twitter.
Twitter’s board of directors will consider Tesla CEO Elon Musk’s “unsolicited, non-binding” bid to buy the social media business, according to the company.
"The Twitter Board of Directors will carefully analyze the proposal to decide the course of action that it feels is in the best interests of the Company and all Twitter investors," Twitter said in response to Musk's offer.