ELON MUSK OFFERS TO BUY TWITTER FOR $41 BILLION

Thu 14 April 2022:

Elon Musk, the billionaire, has made a bid to buy Twitter for $41 billion, just days after declining a seat on the social media company’s board of directors.

Musk’s offer price of $54.20 per share, revealed in a regulatory filing on Thursday, is a 38 percent premium to Twitter’s April 1 close, the final trading day before the Tesla CEO’s more than 9% holding in the company became public.

“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,” Musk wrote in a letter sent to Twitter Chairman Bret Taylor and disclosed in a securities filing.

Twitter shares jumped 12% in premarket trading after closing at $45.85 a share on Wednesday.

Musk first revealed a 9.2% stake in the social media giant earlier this month, in a move that sent shares closing up 27%. The company also announced that Musk would join its board of directors, but he later abandoned those plans.

Here was the letter Musk sent as disclosed in a securities filing:

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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.

Twitter has extraordinary potential. I will unlock it.

Elon Musk

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Shares of Twitter have seesawed in recent weeks amid the news from Musk, but are up 6% this year and 18.5% since the start of the month.

Earlier this week, Musk said he had abandoned a plan to join Twitter’s board, just as his tenure was about to start. Taking the board seat would have prevented him from a possible takeover of the company.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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