Days after the announcement of Tesla co-founder and CEO, Elon Musk not joining the Twitter board, it has now been reported that Musk has offered to buy the entire social media website itself. As revealed by multiple reports, the Tesla CEO has offered to buy Twitter for $54.20 a share in cash. This converts to a total of $43 billion for the whole company. The reports cite documents filed with the Securities and Exchange Commission on Wednesday.
“I am not playing the back-and-forth game. I have moved straight to the end. It’s a high price and your shareholders will love it,” Musk told Twitter as per the SEC report tweeted by him. “If the deal doesn’t work, given that I don’t have confidence in management nor do I believe I can drive the necessary change in the public market, I would need to reconsider my position as a shareholder,” he added.
I made an offer https://t.co/VvreuPMeLu
— Elon Musk (@elonmusk) April 14, 2022
Musk, however, has not yet revealed how he plans to pay Twitter. It is possible that he might have investment partners or he may use his stock in Tesla, the shares of which are slightly down.
Why this is a Good Deal for Twitter Shareholders?
The Tesla CEO thinks it’s a good deal for Twitter shareholders because he is offering an 18.2% premium on where the Twitter shares ended trading on Wednesday. He is also reportedly offering a 38% premium on where the shares traded before his ownership stake was revealed.
This news comes just a few days after current (and fairly new) Twitter CEO Parag Agarwal announced that Musk won’t be joining Twitter’s board.
“We were excited to collaborate and clear about the risks. We also believed that Elon as a fiduciary of the company where he, like all board members, has to act in the best interest of the company and all our shareholders, was the best path forward. The board offered him a seat,” Agarwal said. The Twitter CEO further added that Musk’s appointment to the board was to become officially effective April 9, but the billionaire investor shared that same morning he will no longer be joining the board.”
Musk Criticising Twitter on Multiple Issues
Musk has been criticising Twitter lately and has been a potential threat to the board ever since he took 9.2% share in the company. He reportedly held multiple talks with Twitter about its algorithms and if they should be open-sourced. “I’m worried about de facto bias in “the Twitter algorithm” having a major effect on public discourse,” Musk said on March 24. This was followed by a poll on whether Twitter should be open source or not.
The Tesla CEO also seems to have an issue with maintaining free speech on Twitter. “Free speech is essential to a functioning democracy. Do you believe Twitter rigorously adheres to this principle?” he tweeted with a poll as well. He even tweeted that he is giving serious thought on working on a new platform that is open source and promotes free speech.
But the issues don’t end here. Musk has criticised Twitter for spending engineering resources on integrating NFTs instead of fixing other issues on the website among other things.
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