Elon Musk offers $43 billion for Twitter takeover
By Ibidunni Banjoko
Elon Musk, the Chief Executive Officer of Tesla has launched a hostile takeover bid to buy micro-blogging and social media platform, Twitter, for $43 billion. He announced the offer in a filing with the U.S. Securities and Exchange Commission on Thursday.
The billionaire will offer $54.20 per share in cash, representing a 54% premium over the January 28 closing price and a value of about $43 billion.
In a letter to Twitter’s board, Musk said he believes Twitter “will neither thrive nor serve [its free speech] societal imperative in its current form. Twitter needs to be transformed as a private company.”
Musk had first disclosed a stake of about 9% on April 4. On March 24, he ran a poll asking whether or not Twitter’s algorithm should be open source.
Musk later asked whether or not Twitter rigorously adheres to the principle of free speech. After the majority replied ‘no’, Musk asked whether a new networking site was needed, disclosing he was considering starting his own.
Twitter responded that its board will evaluate an “unsolicited, non-binding” offer from Tesla chief Elon Musk to acquire the social media company.
Twitter made this known in a statement on Thursday.
“The Twitter Board of Directors 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,” Twitter said.
The company also confirmed it received Musk’s bid valuing the company at $43.4 billion.
Elon Musk while making the bid, insisted it was a “best and final offer” and that he was the only person capable of unlocking the full potential of the platform.
It should be recalled that earlier in the month, Musk acquired the controlling share of the micro-blogging company but refused to sit on the board.
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