Elon Musk, one of the world’s wealthiest individuals, has sent a letter proposing to buy all outstanding Twitter shares for $54.20 apiece.
The letter, which was handed on Wednesday, essentially amounts to an offer to take Twitter private, giving Musk more control over the firm. Twitter is worth more than $40 billion, according to the offer.
“I invested in Twitter because I believe it has the potential to be a global platform for free expression, and I believe free speech is a social requirement for a functioning democracy,” Musk said in a letter to Twitter’s chairman, Bret Taylor, which was included in the SEC filing.
Twitter’s stock soared strongly in premarket trading on Thursday morning, raising over 11% to about $50 per share, before reversing course later in the day and settling down 1.7 per cent at $45.08.
Twitter stated that it would evaluate Musk’s offer in a news statement. “The Twitter Board of Directors will carefully consider the proposal to decide the course of action that it feels is in the Company’s and all Twitter investors’ best interests,” the company said.
Musk originally purchased a significant interest in Twitter in mid-March and subsequently agreed to join its board of directors. This decision was abruptly overturned in a couple of days.
Musk has been critical of Twitter’s management of its platform, particularly how it limits what users are permitted to say. Misinformation, demands for violence, abuse, and conspiracy theories have all been targeted by Twitter in recent years. Many Republican lawmakers and conservative journalists have protested those policies, notably after Twitter banned then-President Donald Trump in January 2021.
“However, after making my investment, I’ve realized that the firm, in its current form, can neither prosper nor serve this societal necessity. Twitter must be restructured as a private corporation”, Musk stated. He further noted that his bid is to purchase Twitter in its entirety.
“As a consequence,” Musk said, “I am proposing to acquire 100% of Twitter for $54.20 per share in cash, a 54 per cent premium over the day before I began investing in Twitter and a 38 per cent premium over the day before my investment was publicly publicized.” “If my offer is not accepted, I will have to reevaluate my position as a shareholder.” He went on to say, “Twitter has enormous potential.” “I’ll get it unlocked.”