Elon Musk, the Tesla CEO and billionaire entrepreneur has offered $43 billion in a bid to take over Twitter Inc.
He said the social media company needs to be taken private to grow and become a platform for free speech, adding that Twitter has extraordinary potential and he will love to unlock it.
Musk made this know in a statement he sent to his board on Wednesday. But the offer was made public in a regulatory filing on Thursday.
According to Reuters, the San Francisco-based company’s second-largest shareholder offer price of $54.20 per share represents a 38% premium to Twitter’s April 1 close, the last trading day before his 9.1% stake in the social media platform was made public.
Reuters also reported that Musk – the world’s richest person with a $273.6 billion fortune according to a Forbes tally – rejected an invitation to join Twitter’s board this week after disclosing his stake, a move analysts said signaled his takeover intentions as a board seat would have limited his shareholding to just under 15%.
Investors were not immediately convinced. Shares of Twitter were flat to slightly lower in midday trading. Some argued Musk’s bid undervalued the micro-blogging platform that has become a global means of communication for individuals and world leaders.
Saudi Arabia’s Prince Alwaleed bin Talal tweeted from his verified account about the deal. Describing himself as one of the “largest & long-term shareholders of Twitter,” he said Musk’s offer undervalued the company and he rejected it.
Musk, for his part, told Twitter it was his “best and final offer” and said he would reconsider his investment if the board rejects it.
“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,” Musk said in his letter to Twitter Chairman Bret Taylor.
Musk, a self-described “free speech absolutist,” has been critical of the social media platform and its policies, and recently ran a poll on Twitter asking users if they believed it adheres to the principle of free speech.
Elon Musk’s takeover bid for Twitter has prompted speculation that he would restore Donald Trump’s account if he succeeds in purchasing the social-media platform. But the former U.S. president says he “probably” would not go back.
In an interview with Sirius XM’s Americano Media on Wednesday, before Musk’s announcement, Trump said he “probably wouldn’t have any interest” in returning to the platform, where he had almost 90 million followers.
“You know, Twitter has become very boring. They’ve gotten rid of a lot of their good voices … a lot of their conservative voices,” Trump said
Trump was permanently suspended by Twitter following the assault on the U.S. Capitol by his supporters on Jan. 6, 2021. The platform cited the risk of “further incitement of violence.”
The attack on Congress followed a speech by Trump in which he reiterated false claims that his 2020 election loss to Democrat Joe Biden was because of widespread fraud, an assertion rejected by multiple courts and state election officials.
Twitter’s decision was criticized by Trump’s Republican Party and others as an attempt to stifle conservative voices and an attack on free speech.
Trump has since launched his own social media platform, Truth Social, which has been plagued by technical issues and long waiting times to sign up.
In the interview, Trump said he would wait until after the U.S congressional elections in November to announce whether he will run for another presidential term. But, he said, “I think a lot of people are going to be very happy,” about his decision.
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