Business

Elon Musk offers $54.20 per share in cash to buy Twitter

The micro-blogging platform's shares soared nearly 18 percent in pre-market trading after the news broke

April 14, 2022

Elon Musk offered to buy Twitter for about $41 billion, just days after rejecting a seat on the social media company’s board

The Tesla and SpaceX billionaire Elon Musk has offered to buy Twitter for about $41 billion, just days after rejecting a seat on the microblogging giant’s board. Musk’s offer price of $54.20 per share, which was disclosed in a regulatory filing on Thursday, represents a 38 percent premium to Twitter’s April 1 close, the last trading day before the Tesla CEO’s more than 9% stake in the company was made public.

The micro-blogging platform’s shares soared nearly 18 percent in pre-market trading after the news broke.

Tesla CEO Elon Musk is believed to have made his “best and final” offer of $54.20 per share in cash to buy 100 percent of Twitter, in an updated filing with the US Securities and Exchange Commission (SEC).

Musk is offering to “acquire all of the outstanding Common Stock of the Issuer not owned by the Reporting Person for all cash consideration valuing the Common Stock at $54.20 per share,” read the filing.

Musk says Twitter needs to go private to go through the changes that need to be made.

“I would need to reconsider my position as a shareholder,” he added. “I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy,” Musk said in the fresh filing.

“However, 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,” he added.

“If the deal doesn’t work, given that I don’t have confidence in management nor do I believe I can drive the necessary change in the public market, I would need to reconsider my position as a shareholder.”

Earlier this week, Musk had abandoned the plan to join Twitter’s board, just as his tenure was about to start said the CEO of Twitter, Parag Agrawal.

[With Inputs from IANS]

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