As you're probably aware, Tesla and SpaceX CEO Elon Musk became Twitter's largest shareholder last week. The company invited him to join its board, though we learned more recently that he declined. In the meantime, the CEO was tweeting about Twitter and potential changes to the platform, a series of tweets he's since deleted.
Many speculated that Musk's decision not to join the board could mean he had bigger plans. Perhaps he would just buy Twitter altogether? This morning, the outspoken CEO tweeted, "I made an offer." Upon opening the attached link, it becomes clear that Musk has offered to buy Twitter.
Musk is offering $43 billion, or $54.20 per share in cash, to take over the social media platform. He's made it clear that he believes changes must be made to Twitter. Musk has made several references to free speech of late, so some people have found it interesting that after buying a large stake in Twitter and being invited to the company's board, he ended up deleting many related tweets.
Part of the official filing reads:
"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.
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.
As a result, I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before I began investing in Twitter and a 38% premium over the day before my investment was publicly announced. My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder."
NPR points out that Musk's offer of $54.20 per share is over 18% higher than the company's Wednesday, April 13, 2022, closing price. Moreover, it's 38% higher than the stock price prior to the announcement of Musk's large stake in the company, which he didn't disclose in a timely manner.
Twitter has confirmed it received Musk's offer, though it was unsolicited. The company has said it will review the offer carefully before making a decision about how to move forward.
Musk also suggested that the company should be taken private. He explained in the SEC filing that if his offer doesn't go through, he may need to reconsider his position as a Twitter shareholder. He noted that he doesn't have confidence in management, and he also doesn't think he can push for the necessary changes in the public market. He was also clear that "This is not a threat."