Elon Musk offers to buy Twitter for more than $ 40 billion Elon Musk

Elon Musk has launched a bold offer to buy Twitter for $ 43.4 billion (£ 33 billion), saying he wants to unleash his “extraordinary potential” to promote freedom of speech and democracy worldwide.

Tesla’s chief executive and the world’s richest man revealed in a regulatory dossier on Thursday that he had started a hostile takeover of Twitter. He also confirmed the move in a public statement at the TED conference in Vancouver later that day.

“Having a trusted and inclusive public platform is critical to the future of civilization,” Musk said in an interview with Chris Anderson, Ted’s curator and former editor of Wired.

The news of the takeover attempt came just days after Musk revealed that he had bought a 9.2% stake in the social media company and was subsequently offered a seat on the board, but then refused. to take the position.

I made an offer https://t.co/VvreuPMeLu

— Elon Musk (@elonmusk) April 14, 2022

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In a letter to Brett Taylor, chairman of Twitter, Musk said the site was not thriving as a company or a tool to improve freedom of speech and “needs to be transformed as a private company.”

Musk, who has more than 80 million followers on Twitter, said that if his proposal was not accepted, he would “reconsider my position as a shareholder” because he did not trust [Twitter’s current] management ”.

“This is not a threat,” he added. “It’s just not a good investment without the changes that need to be made.”

In documents from the U.S. Securities and Exchange Commission (SEC) on Thursday, Musk said he had offered to buy all shares of Twitter for $ 54.20 each – a 54% premium over the closing price of Twitter on Jan. 28, the day before start buying his share. However, after the opening of the markets, they increased by only 1% at the beginning of trade.

“I invested in Twitter because I believe in its potential to be a platform for freedom of speech around the world and I believe that freedom of speech is a public imperative for a functioning democracy,” Musk wrote in a letter to Taylor.

“However, after making my investment, I now realize that the company will neither thrive nor serve this social imperative in its current form. Twitter needs to be transformed as a private company.

“As a result, I propose to buy 100% of Twitter for $ 54.20 per share in cash, 54% premium the day before I start investing in Twitter and 38% premium the day before my investment is announced publicly.

“My offer is my best and last offer and if it is not accepted, I will have to reconsider my position as a shareholder. Twitter has tremendous potential. I will unlock it. “

In a statement, Twitter confirmed that it had received the “unsolicited” offer and that the board would “carefully review” it to “determine the course of action it believes is in the best interests of the company and all Twitter shareholders.”

Employees of the company, some of whom panicked about Musk’s influence on his ability to moderate content, are expected to attend a general meeting on Twitter later Thursday to discuss the news, Reuters reported.

The company’s chief executive, Parag Agraval, warned employees earlier this week that “there will be distractions” and “turn off the noise and stay focused on work”.

Proponents of her case have been working to make the actual transcript of this statement available online. Proponents of her case have been working to make the actual transcript of this statement available online.

“Social media platform users must not succumb to the whims of bombastic billionaires who are disconnected from reality and lack a real commitment to free expression, racial justice and democracy,” said Jessica Gonzalez, co-executive director of the non-profit social justice organization. Free Press.

Saudi investor Prince Alwaleed bin Talal, one of the largest shareholders on Twitter, tweets that he turned down Musk’s offer to take over. “I do not believe that the offer offered by Elon Musk ($ 54.20) is close to the intrinsic value of Twitter, given its growth prospects,” he wrote.

Musk later responded to the statement on Twittercalling it “interesting” and calling for “the kingdom’s views on journalistic freedom of speech.”

With an estimated fortune of $ 274 billion, Musk, who is also the CEO of electric car maker Tesla and aerospace firm SpaceX, is one of the few people with enough cash to fund a private purchase on Twitter. He hired investment bank Morgan Stanley to advise him on the takeover proposal.

The $ 54.20 bid includes the number 420, which appears to be a reference to the number used as a cannabis code. When Musk offered to take over his electric car maker Tesla in 2018, he offered to buy the shares he still doesn’t own for $ 420 a share, saying he had “secured funding” for the deal.

In 2018, Musk caused concern by smoking marijuana on a live web show while being investigated by the SEC for a tweet that said he planned to make Tesla private.

The SEC opened up against him over the tweet, and Musk agreed to make public statements about the company’s finances for review by its legal counsel. He was later found to have breached the agreement and eventually agreed to step down as chairman of Tesla, appoint additional independent directors and agree to pay $ 40 million in fines.

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Dan Lane, an analyst at Freetrade, said the SEC may not be kind enough to accept Musk’s attempt to buy Twitter. “Sowing the seeds to protect ‘freedom of speech’ is one thing. But let’s not forget that Elon’s view of simply expressing an opinion has been seen as reckless by regulators in the past, “he said.

“Headlines may add a little life to Twitter’s stock price, but it could mean that SEC scrutiny is moving from simply using the platform from Musk to the platform itself. That’s not something the company will want to hang over. “

Musk is facing a separate lawsuit over his purchase of shares on Twitter by an investor who claims that the failure of the executive to disclose its stake in Twitter has artificially lowered share prices, causing investors to lose millions of dollars.

The agencies contributed to the reporting

The title and text of this article were changed on April 14, 2022, as an earlier version, based on calculations made by Reuters, said that the deal was worth $ 41.4 billion. That changed to $ 43 billion based on company documents.

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