Tesla Inc. CEO Elon Musk attends the World Conference on Artificial Intelligence (WAIC) in Shanghai, China, on August 29, 2019.
Ali’s song Reuters
Elon Musk offered to buy Twitter for $ 54.20 per share, saying the social media company should be transformed privately, just over a week after it first unveiled a 9.2% 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.
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,” wrote he. “My offer is my best and final offer, and if it is not accepted, I will need to reconsider my position as a shareholder.”
Shares of Twitter jumped more than 6% in pre-market trading after closing at $ 45.85 per share on Wednesday. According to the statement, Musk nominated Morgan Stanley as a financial advisor.
“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. David Faber of CNBC said on the air of “Screaming in the Street” that Twitter’s board will meet at 10 a.m. to evaluate the application, according to acquaintances.
The news came days after Twitter CEO Parag Agraval warned investors about the “drag”.
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.
On this news, Tesla shares fell 1%.
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.