Recently, Elon Musk bought a 9.2% stake in Twitter and became the largest shareholder in the company. Now he has made a final bid to buy Twitter Inc. He is ready to offer $54.20 per share in cash, a 38% premium over the April 1 closing price. After this news broke, Tesla shares soared 18%.
After Musk became Twitter’s biggest shareholder, the company offered Musk a seat on its board. But Musk decided not to because he has other plans. A few reports also claim that Musk thought Twitter should be taken private and also informed Twitter’s board about his views over the previous weekend.
In a filing with the US financial regulator, Musk said: “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.”
Musk has hired Morgan Stanley as his advisor to take over Twitter.
Elon Mush has a net worth of $273.6 Billion. So, buying Twitter is not a big deal for him. Now it will be interesting to see how Twitter’s board responds to the offer. Last year’s Twitter share hit $70. So, it is hard for the board or shareholders to accept the $54.20 per share offer.
