Elon Musk wants to buy Twitter for US$41 billion
2022 could bring some fundamental changes for the Twitter platform. Just last week, the dev team announced the introduction of an edit tweet feature, and now Elon Musk is trying to take the company by storm with an enticing offer for the shareholders. In early April, Musk was considering joining Twitter's board, but, after carefully assessing the situation, the business magnate ultimately refused a board position, which would have limited his stake to just under 15%. This clearly signaled Musk’s intentions to take over the company, and most Twitter investors agreed to initiate a class action suit. Today, Musk announced that he is offering US$41 billion in cash to outright buy the entire company and possibly avoid any complications with the lawsuit.
The price per share is fixed at US$54.20 as disclosed in the SEC filing and Musk is looking to buy a total of 763.58 million shares. Also stipulated in the SEC filing is the fact that the price share “represents a 54% premium over the closing price of the Common Stock on January 28, 2022, the trading day before [Musk] began investing in [Twitter], and a 38% premium over the closing price of the Common Stock on April 1, 2022, the trading day before [Musk]’s investment in [Twitter] was publicly announced.”
Musk’s latest letter addressed to Twitter Chairman Bret Taylor presents the reasoning behind his actions: “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.” There is no room for further negotiations, as Musk also added that “my offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder.”