Twitter announced that it would “carefully evaluate” businessman Elon Musk ‘s proposal to acquire the social network at a price of $54.20 per share.
It seemed strange that Elon Musk , the world’s wealthiest person, would only own 9.2% of Twitter’s shares while lashing out with speeches about rethinking the terms of the social network founded by Jack Dorsey. Now, the South African billionaire has gone all out: he has offered $43 billion for the little blue bird on a silver platter.
According to Bloomberg , Musk has launched this hostile acquisition of Twitter , offering $54.20 per share, a price that increases its value by 54% compared to its value at the close of business on January 28. This offer shot up the cost of the company’s shares by 18%.
“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 expression is a social imperative for a functioning democracy, ” Musk said in a letter to the board . directive.
“As a result, I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before I started investing in Twitter and a 38% premium over the day before the public announcement of my investment. My offer is my best and last offer and if it is not accepted, I would have to reconsider my position as a shareholder”, added the founder of Neuralink.
Elon Musk: “Twitter should be private”
With 80 million followers on the network, Musk has been able to shake the waters within Twitter. The current CEO of SpaceX and The Boring Company has raised various doubts in the last week regarding the operation of the system, as well as showing his concern on issues of freedom of expression.
In this letter to Twitter’s board of directors, Musk said he believes it “will not thrive or serve [his freedom of expression] social imperative in its current form. Twitter needs to transform into a private company.”
I made an offer https://t.co/VvreuPMeLu
— Elon Musk (@elonmusk) April 14, 2022
Offer 420 is “too low”
However, this proposal has not been well received by shareholders. According to a report by Adam Crisafulli, founder of Vital Knowledge Media, the proposal of 54.20% per share would be below the expectations of the board of directors, who could expect an amount close to 70 dollars, the price of Twitter shares. just under a year ago.
It is no coincidence that the amount has been valued at $54.20. The reference to marijuana by the billionaire is repeated after offering $420 per share in his bid to take Tesla private.
Twitter will evaluate proposal
According to AFP, “Twitter announces that it will ‘carefully examine’ Elon Musk’s offer to buy the entire company”, after having learned of the businessman’s proposal in this aggressive purchase intention. Currently, the social network is looking for dynamic ways of monetization with its “Twitter Blue” subscription model, as well as different commitments to boost digital environments in audio and video. The social network indicated in a statement that it received “the unsolicited and non-binding offer of Elon Musk” and that his board of directors will “carefully examine it to determine the course of action it believes will best serve the interests of the company and all Twitter shareholders.
Twitter maintains a market valuation of 37 billion dollars, a lower figure compared to the 260 billion that Elon Musk holds.