Elon Musk offers to buy Twitter for $43.4 billion

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Elon Musk


Tesla chief Elon Musk has launched a hostile takeover bid on Twitterinsisting that it was a “best and last offer” and that he was the only person who could unlock the platform’s full potential.

Musk offered $54.20 per share, which values ​​the social media company at $43.4 billion, in a filing dated Wednesday, April 13 with the Securities and Exchange Commission.

Twitter’s board said it would carefully consider what it called Musk’s “unsolicited and non-binding” offer and decide on a course of action that was “in the best interest of the community.” company and all Twitter shareholders”.

Musk’s latest move to Twitter comes just days after he was turned down a board seat following his acquisition of a 9.2% stake in the microblogging platform.

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“I invested in Twitter because I believe in its potential to be the platform for free speech around the world, and I believe that free speech is a societal imperative for a functioning democracy” , Musk said in his filing.

“However, since making my investment, I now realize that the business will not thrive or serve this societal imperative in its current form,” he said.

“Twitter must be made a private company. Accordingly, I am offering to buy 100% of Twitter for $54.20 per share in cash, a premium of 54% over the day prior to the day I started to invest in Twitter.”

“Popcorn Time”

Musk, Twitter’s largest shareholder, said his “offer is my best and last offer” and that he would reconsider his shareholder position if it is rejected.

“Twitter has extraordinary potential. I will unblock it,” he said.

Wedbush analysts said Twitter’s board would likely be forced to accept the offer or seek another buyer.

“It’s popcorn time, as we expect many twists and turns in the coming weeks as Twitter and Musk embark on the marriage path,” reads the analysis, along with a host of questions. likely to revolve around funding, regulatory and balancing issues. Musk’s time between his many ventures.

Currently the richest man in the world and with more than 80 million followers on the microblogging platform, Musk last week announced a purchase of 73.5 million shares – or 9.2% – of common stock from Twitter. His announcement boosted Twitter’s shares by more than 25%.

He was offered a seat on the board but turned it down over the weekend.

Musk’s decision comes after he tweeted on Saturday asking if the social media network was “dying” and calling out users such as singer Justin Bieber, who have a huge following but rarely post.

“Most of these ‘top’ accounts rarely tweet and post very little content,” the Tesla boss wrote, captioning a list of the 10 profiles with the most followers – including himself at number eight, with 81 million subscribers.

In other tweets over the weekend, Musk posted humorous polls about whether to drop the “w” from Twitter’s name and whether to convert his San Francisco headquarters into a homeless shelter “since no one shows up anyway.”

He also suggested removing ads, Twitter’s main source of revenue.

The billionaire tech entrepreneur is a frequent Twitter user, regularly mixing inflammatory and controversial statements about issues or other public figures with whimsical or business-oriented remarks.

He has also repeatedly fallen out with federal securities regulators, who cracked down on his use of social media after an alleged effort to take Tesla private in 2018 failed.

AFP

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