Elon Musk offers to buy Twitter, who has been a long-standing proponent of acquiring Twitter and is attempting to persuade other investors in private, made one last offer for the firm. He suggested paying $54.20 per share for Twitter, which would make him the firm’s largest individual owner at $43 billion. Elon Musk already owns 9.2 percent of the social media platform. Elon Musk wrote in a letter announcing his intentions to acquire the company that:
“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.”
Elon Musk offers to buy Twitter and this is his “best and final” offer, which comes after a turbulent relationship between the entrepreneur and Twitter since he revealed his stake two weeks ago. Musk is one of Twitter’s largest shareholders. He then declined a seat on the social media firm’s board of directors, adding fuel to the fire that he would try to take it over in a hostile manner.
Why does Elon Musk want to buy Twitter?
Elon Musk, who has 81 million Twitter followers, is a frequent user of the service but also one of its most vocal critics. In March, Musk tweeted a poll to his followers on Twitter asking if they thought the platform was protecting free speech. He told that the poll results, in which 70% of 2 million respondents answered “no,” would be “very significant.”
Free speech is essential to a functioning democracy.
Do you believe Twitter rigorously adheres to this principle?
— Elon Musk (@elonmusk) March 25, 2022
The First Amendment protects individuals from the government silencing them, not firms such as Twitter, which may enforce their own restrictions on what is and isn’t acceptable. Elon Musk said in the following tweet:
“Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy. What should be done?”
Musk stated in the letter that he put money into Twitter because he believes it has the potential to be a worldwide platform for free speech. To achieve his goal, Musk thinks that the public company should go private. This is the reason Elon Musk offers to buy Twitter.
Responses after Elon Musk offers to buy Twitter
Twitter CEO Parag Agrawal advised staff on Sunday that there would be “distractions ahead,” but he has yet to speak out about Elon Musk’s offer to buy the social media site. He informed Twitter’s workers that the firm was still evaluating Musk’s proposal and would make a decision “in the best interests of our shareholders.”
In a press release, Twitter stated it had received the proposal and that the board 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.”
Will Twitter accept Elons offer?
Elon Musk offers to buy Twitter, will they accept it? It’s unlikely to happen, according to some experts. According to a note from Morningstar’s senior equity analyst Ali Mogharabi, the likelihood of Twitter accepting the offer is less than 50%. Some of Twitter’s biggest investors think the offer is too low. Saudi billionaire Prince Alwaleed bin Talal tweeted as such.
I don't believe that the proposed offer by @elonmusk ($54.20) comes close to the intrinsic value of @Twitter given its growth prospects.
Being one of the largest & long-term shareholders of Twitter, @Kingdom_KHC & I reject this offer.https://t.co/Jty05oJUTk pic.twitter.com/XpNHUAL6UX
— الوليد بن طلال (@Alwaleed_Talal) April 14, 2022
After Elon Musk offers to buy Twitter, a venture capitalist and early investor in Twitter, Fred Wilson, said in a tweet that:
“Twitter is too important to be owned and controlled by a single person. The opposite should be happening. Twitter should be decentralized as a protocol that powers an ecosystem of communication products and services.”
Elon Musk tweeted a poll on Thursday, asking whether shareholders or the board have control of taking Twitter private.
Taking Twitter private at $54.20 should be up to shareholders, not the board
— Elon Musk (@elonmusk) April 14, 2022
Elon Musk net worth and how would he pay?
With a net worth of $264.9 billion, Musk is said to be the wealthiest individual on the planet, yet it’s unclear how he’d pay for Twitter. Musk may sell his Tesla and SpaceX holdings or borrow money using them as collateral, according to the Wall Street Journal. Neither of these choices is ideal from a financial standpoint. Elon Musk stated, while on stage at the TED convention on Thursday, “I have sufficient assets…” before changing topics.
What if Twitter rejects the offer?
Elon Musk wrote to Taylor that he would reconsider his position as a shareholder in Twitter if the deal is rejected by the company. According to Mogharabi, the company’s decision may have an impact on Twitter’s stock price. Musk has said that he is considering starting his own social media network. Elon Musk said in his TED Talk that he does have a “Plan B” if his offer is rejected, but he didn’t specify what it was.
