Elon Musk offers to buy Twitter for $43 billion

Elon Musk offers to buy Twitter for $ 43 billion, saying the social media company “needs to be transformed into a private company.”

The billionaire and founder of Tesla, who is the largest shareholder of Twitter after revealing it it has a 9.2% stake. in the company, proposed on Thursday in a regulatory presentation buy all Twitter for $ 54.20 per share. In a statement, Twitter said it had received an offer from Musk and that his board would “carefully review the proposal.”

“I invested in Twitter because I believe in its potential to be the platform for freedom of expression around the world, and I believe that freedom of speech is a social imperative for a functioning democracy,” he said. the presentation. “However, since I made my investment now I realize that the company will not prosper or serve this social imperative in its current form.”

Twitter shares rose 8.5% to $ 49.75 before the start of trading. The social media platform was valued at $ 37 billion before Musk’s bid.

Describing Twitter as “an extraordinary potential,” Musk said his unsolicited offer is his “best and last offer.” He also said he would “reconsider” his investment in the company if his offer is rejected.

Musk, who also founded SpaceX and is ranked by Bloomberg as the richest person in the world, revealed on April 4 that he had bought a $ 2.9 billion stake on Twitter. The company said at the time that the employer would join its board of directors, but Twitter CEO Parag Agrawal said on Sunday that Musk had changed his mind and would not take a seat as a board member.

Musk’s bid to buy Twitter, described by Wedbush Securities analyst Dan Ives as an “aggressive hostile takeover,” is likely to end with Musk as the owner of the business, albeit with many twists and turns in the coming weeks, “Ives said in a report. The Twitter board will likely have to accept your offer or solicit other offers, he predicted.

“It would be difficult for other bidders / consortiums to emerge,” Ives said. “There will be a lot of questions about funding, regulation, Musk’s time balance (Tesla, SpaceX) in the coming days, but ultimately, based on this presentation, it’s an offer now or never. for Twitter to accept. “

What does Musk want with Twitter?

Musk’s 80.5 million followers on Twitter make him one of the most popular figures on the platform, surpassing celebrities like Kim Kardashian and Selena Gomez.

But his frequent tweets have also caused regulatory issues, such as his own long-running dispute with the Securities and Exchange Commission after tweeting in 2019 that he had the money to take Tesla privately to $ 420 per share. This did not happen, but it caused a jump in stocks and caught the attention of regulators.

As Twitter’s largest shareholder, Musk was expected to do so boost the company on issues of freedom of expression, a topic that has been openly discussed. His takeover bid highlighted this issue, with Musk marking his focus on “free speech.”

In his offer, Musk also hinted that he might want to change the way Twitter works. For example, he has called for wider access to “verified” accounts, or Twitter accounts that are accompanied by a blue check mark, which is reserved for public figures, journalists, and others in the news.

– Aimee Picchi of CBS News contributed to this report.

In:
• Elon Musk
• Twitter