Tesla CEO Elon Musk on Thursday offered to buy social media giant Twitter for $54.20 per share. Musk recently became the largest shareholder in Twitter after taking a 9.2% stake.
The offer represents an over 15% premium to Twitter’s last close, and values the social media giant at roughly $43 billion. Musk said the offer was a 38% premium to Twitter’s share price just before he revealed his stake in the firm.
Musk said his offer was his best and final, and that he would reconsider his position as a Twitter shareholder if it was rejected.
Elon Musk intends to transform Twitter
In a letter to Twitter Chairman Bret Taylor, Musk said Twitter needed to be transformed in order to become a platform for free speech around the globe. He believes that in its current state, the company will not be able to do so.
Twitter has extraordinary potential. I will unlock it.
-Musk said in the letter
The takeover offer comes days after Musk declined a seat on the Twitter board, even as he became the social media firm’s largest shareholder. The move had fuelled speculation over a possible takeover offer, given that Twitter board members are not allowed to hold over 15% of the company.
Since taking the stake, Musk had floated at several plans for the social media platform, including a possible edit button for tweets, as well as a subscription service that would accept payment in Dogecoin.
An indomitable presence on Twitter
Even before revealing his stake in the firm, Musk has commanded a large following on the social media platform, for better or for worse. His tweets regarding Tesla’s stock price have attracted regulatory ire, but have also sent ripples across markets.
Musk’s tweets on crypto, particularly DOGE, have also caused wild swings in the crypto market. He is currently the eighth-most followed account on Twitter, at over 81 million followers.
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