Tesla CEO Elon Musk made an offer to Twitter’s board of directors: he wants to buy the company for $54.20 per share and transform Twitter into a private company. The amount of the deal should be about $43 billion.
Shares of Twitter jumped 12 percent in premarket trading after closing Wednesday at $45.85 a share. Below is the letter Musk sent to Twitter Chairman Bret Taylor:
I invested in Twitter because I believe in its potential to be a platform for free speech around the world, and I believe that free speech is a societal imperative for a functioning democracy. However, after my investment, I realize that the company will neither thrive nor serve this public imperative in its current form. Twitter needs to be transformed into a private company.
As a result, I am offering to buy 100% of Twitter at $54.20 per share in cash, at a premium of 54% over the day before I began investing in Twitter and at a premium of 38% over the day before the public announcement of my investment. This is my best and final offer, and if it is not accepted, I will have to reconsider my position as a shareholder.
Twitter has exceptional potential. I will unblock it.
Last week, Elon Musk bought 9.2% of Twitter stock, making him the company’s largest shareholder. He was supposed to join the board of directors on Saturday, April 9, but on the morning of the same day, Musk announced that he would not be joining the board of directors. Musk then decided to turn Twitter’s headquarters into a homeless shelter and asked his readers what they thought about it.
Yesterday, Dmitry Rogzin said that Elon Musk would become the owner of a leading media outlet.
Twitter stock is up 6 percent this year and 18.5 percent since the beginning of the month.