Tech

Elon Musk offers to buy Twitter for $ 43 billion so that it can be “transformed into a private company”

Elon Musk offered to buy Twitter for $ 54.20 per share in a statement released Thursday, saying the social media company should be converted privately, just over a week after revealing a 9.1% stake in the company. Mask’s proposal estimates Twitter at about $ 43 billion.

“I have invested in Twitter because I believe it can be a platform for freedom of speech around the world, and I believe that freedom of speech is a public imperative of a functioning democracy,” Musk wrote in a letter to Twitter chairman Brett Taylor. in the declaration of securities.

Shares of Twitter rose about 4% on Thursday morning after closing at $ 45.85 per share on Wednesday. On this news, Tesla shares fell more than 3%.

According to Mask, the social media campaign should become private because it can “neither thrive nor serve” freedom of speech in its current state.

“As a result, I propose to buy 100% Twitter for $ 54.20 per share in cash, 54% premium the day before I started investing in Twitter, and 38% premium the day before my investment was publicly announced,” he said. wrote. “My offer is my best and final offer, and if it is not accepted, I will need to reconsider my position as a shareholder.”

According to the statement, Musk nominated Morgan Stanley as a financial advisor.

Later on Thursday, during a conversation on TED2022, he said he was not interested in acquiring Twitter to make money on it, and even said he was not sure if he would be able to buy the company.

“It’s not a way to make money … I just think my strong intuitive feeling is that having a public platform that is highly trusted and widely inclusive is extremely important for the future of civilization,” Musk said. on TED2022. “But yes, I’m not worried about the economy at all.”

During the conversation, he also said he would try to keep as many shareholders of the private company as possible.

The news came days after Twitter CEO Parag Agraval warned investors about the “drag”.

“Twitter’s board of directors will carefully consider the proposal to determine a course of action that it believes is in the interests of the company and all Twitter shareholders,” the company said in a statement on Thursday in response to the proposal. CNBC’s David Faber said on “Scream in the Street” that Twitter’s board will meet at 10 a.m. to evaluate the application, according to acquaintances.

Musk first revealed his stake in the social media giant on April 4th. He later received a seat on the company’s board of directors before canceling those plans.

The CEO of Tesla previously publicly criticized the social media giant, asking people on Twitter last month whether the company adheres to the principles of freedom of speech. He also said he was considering creating a new social networking platform.

Shares of Twitter have risen in recent weeks amid news from Mask, but have risen 6% this year and 18.5% since the beginning of the month.

Here is a letter from Musk, sent as shown in the Securities Declaration:

I have invested in Twitter because I believe it can become a platform for freedom of speech around the world, and I believe that freedom of speech is an imperative of society for a functioning democracy.

However, once I have made my investments, I understand that the company will neither prosper nor serve this public imperative in its current form. Twitter needs to be turned into a private company.

As a result, I propose to buy 100% Twitter for $ 54.20 per share in cash, 54% premium the day before I started investing in Twitter, and 38% premium the day before my investment was publicly announced. My proposal is my best and final proposal, and if it is not accepted, I will need to reconsider my position as a shareholder.

Twitter has tremendous potential. I will unlock it.

Elon Musk

Elon Musk offers to buy Twitter for $ 43 billion so that it can be “transformed into a private company”

Source link Elon Musk offers to buy Twitter for $ 43 billion so that it can be “transformed into a private company”

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