The world’s richest person, Elon Musk, has made a $43 billion offer to buy Twitter so it can be “transformed as a private company,” says it “has extraordinary potential, I will unlock it” for “free speech around the globe.”
Elon Musk makes $43 Billion offer to buy Twitter
Elon Musk, the world’s richest person, has made an unsolicited offer of $43 billion to buy Twitter, which equates to roughly $54.20 per share in cash, saying the company has extraordinary potential and wants to unlock it.
Bloomberg reported that the offer comes days after Musk rejected a seat on the social media company’s Board of Directors after purchasing a 9.2% stake in the company.
Musk wants to transform Twitter as platform for free speech
Along with the offer, Musk explained his motivation for purchasing Twitter to advance free speech around the globe.
Days before Musk disclosed his 9.2% stake in Twitter, becoming the company’s largest shareholder, he referred to the social media platform as “the de facto public town square,” the New York Post reported. He went on to slam the company for “failing to adhere to free-speech principles fundamentally undermines democracy.”
Musk suggests removing ads to end corporate influence
Musk proposed abandoning advertisements on Twitter to remove corporate influence on free speech and policy.
“And no ads,” Musk tweeted last week after declining a seat on the board. “The power of corporations to dictate policy is greatly enhanced if Twitter depends on advertising money to survive.”
Musk makes take it or leave it offer
“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,” Musk wrote in a letter sent to Twitter Chairman Bret Taylor and that was also disclosed in a securities filing.
“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.”
“I am not playing the back-and-forth game,” Musk continued in the letter and filing. “I have moved straight to the end. It’s a high price and your shareholders will love it.”
“My offer is my best and final offer, and if it is not accepted, I would need to reconsider my position as a shareholder,” Musk added.
Musk’s offer boosts Twitter shares
After Musk’s offer circulated, Twitter’s shares jumped over 6% in premarket trading after closing at $45.85 a share on Wednesday.
According to the filing, CNBC reported that Musk has enlisted Morgan Stanley as a financial advisor.
