The multi-billionaire Elon Musk, who recently acquired a 9.2% stake in Twitter, is offering to buy the entire company for $54.20 a share and take the company off Wall Street, shows a document sent Wednesday, April 13, 2022 to the American Stock Exchange.
The managing director of the electric car manufacturer Tesla and founder of the aerospace group SpaceX specifies that this is “his best offer and his final offer” and threatens, in the event of refusal, he will “re-examine his position as a shareholder” within the social network.
It is worth mentioning that he had refused to enter the board of directors earlier. “I don’t trust the management and I don’t think I can manage the necessary changes in the context of a stock market listing,” he explains in a letter to the social network’s board of directors. Twitter had offered him to join the board of directors, which he had refused.
Elon Musk offers to completely buy Twitter for $43 billion
Twitter shares gained 13.6% in pre-market trading after the announcement of its proposal. Musk is the largest shareholder in Twitter after purchasing 73,486,938 shares. He is an avid twitterer himself, has 81.6 million followers and has complained a lot about the network’s policies lately.
“Twitter must be transformed into a private company,” Musk wrote in a letter. Figures put forward by Musk would value Twitter at $43.4 billion, up from about $37 billion today.
According to Forbes, Musk’s personal fortune is nearly $274 billion, making him the richest man in the world.
Elon Musk‘s refusal to take a seat on the board of directors of Twitter; as Bloomberg explains, was later recorded in an official document from the US Securities and Exchange Commission (SEC); in which the billionaire said that he had no intentions to immediately buy additional shares of the company; but kept reserve the right to change their mind at any time and to openly make any public statements.
Recall that from the end of January to the beginning of April; Elon Musk concentrated in his hands a 9.2% stake in Twitter. The rate of these securities has risen by 30% in recent days; but after the management’s statements about Musk’s refusal to take a seat on the board of directors, he slightly decreased. The publication of the SEC document allowed Twitter shares to strengthen in price by 1.69%.
The SEC document notes that Musk reserves the right to discuss “various combinations and strategic alternatives” with the Twitter board of directors. He also does not limit himself in his ability to address the board of directors through open communication channels such as social networks.