Elon Musk offers to buy Twitter for USD 41 billion
Billionaire Elon Musk has offered to buy Twitter for about $41.39 billion, according to company’s regulatory filing dated April 14. Musk has offered to buy all shares of the micro-blogging site for USD 54.20/ share, excluding the ones he already owns.
The offer price represents a 38% premium to the closing price of Twitter stock on April 1, the last trading day before the TESLA CEO announced his acquisition of 9% stake in the company. Musk said the cash offer was his “best and final offer,” according to the SEC filing, adding that if it’s not accepted he would have to reconsider his position as a shareholder. After the contents of the SEC filing was made public Twitter’s shares jumped 12% in premarket trading.
The development comes just days after rejecting a seat on the social media company’s board. On Sunday Twitter CEO Parag Agrawal disclosed Musk had decided not to join the board, which removed that limit. Musk had been unusually silent on his plans for Twitter in the days since then. Taking the board seat would have prevented him from a possible takeover of the company. “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 a letter to Twitter Chairman Bret Taylor. “My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder,” he said.
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Last week, Musk disclosed he had been buying shares of Twitter since late January, and that he had accumulated a 9.2% stake since that time, spending $2.6 billion on the shares he purchased. Thereafter, Musk began appealing to fellow users about prospective moves, from turning Twitter’s San Francisco headquarters into a homeless shelter and adding an edit button for tweets to granting automatic verification marks to premium users.
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