Elon Musk Proposes to Buy 100% of Twitter for $43B

Elon Musk, the CEO of Tesla and SpaceX, and now the largest investor in Twitter by percentage, has made an offer to buy the remaining percentage of Twitter for $54.20 per share in cash according to a filing submitted on Wednesday, April 13. 

Musk, who currently owns 9.2% of the social media platform, took to Twitter Thursday to announce the news.  

Musk’s offer of $54.20 per share, which would value the company at $43 billion, is a 54% premium over the day before he began investing in Twitter and a 38% premium over the day before his investment was made public. Musk said that that was his best and final offer and that if it wasn’t accepted he would need to reconsider his position as a shareholder. 

Twitter stock is currently being traded at $45.66, which is down 0.55% today and 3.57% in the last five days. 

In short, the founder of The Boring Company discovered upon his initial investment that Twitter would neither thrive nor serve the societal imperative of free speech in its current form. As a result, he suggested in the filing that Twitter needs to be transformed as a private company. He made these comments in a letter attached to the filing directed to Bret Taylor, Twitter’s chairman of the board. 

Musk concluded his letter stating “Twitter has extraordinary potential. I will unlock it.”

On April 4, a regulatory filing showed that the world’s richest person, Musk, was set to join Twitter’s board of directors. However, it was later revealed that by the end of the week, Musk rejected the offer. 

The CEO of Twitter Parag Agrawal announced the news on his own Twitter, tweeting “Elon has decided not to join our board. I sent a brief note to the company, sharing with you all here.” 

While Agrawal and other board members were initially eager to have Musk join the board, they realized upon his rejection that it was for the best.

“I believe this is for the best. We have and will always value input from our shareholders whether they are on our Board or not. Elon is our biggest shareholder and we will remain open to his input,” Agrawal said in his announcement. 

Now we will see how Taylor responds to Musk’s offer of purchasing Twitter outright. 

Author: Tyler Irvin

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