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Elon Musk has always had a huge presence on Twitter, to the point where even if you don't follow him, you've likely seen him pop up in your feed. A couple of weeks ago, Musk bought into Twitter, acquiring a minority stake. Now, he's looking to buy the company in full.
Initially, Musk acquired a 9.2% stake in Twitter, enough to gain an invitation to the company's board. However, Musk turned down the offer to join the board, which in turn paves the way for Musk to buy more shares in a potential hostile takeover. It might not get to that point though, as he has now offered to acquire the company in full for $54.20 per share – or $41.4 billion in total.
I made an offer https://t.co/VvreuPMeLu
— Elon Musk (@elonmusk) April 14, 2022
Musk made this public today, tweeting “I made an offer” along with a link to the SEC filing page. A letter to Twitter's chair, Bret Taylor, has also been published, in which, Musk explains that he believes he can unlock the platform's full potential, but the company needs to be taken private first.
Musk also expressed a lack of confidence in Twitter's management and added that he will “reconsider” his position as a shareholder if he can't take the company private.
“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy. However, since making my investment I now realise the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company”, Musk wrote.
“My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder. Twitter has extraordinary potential. I will unlock it.”
Currently, Twitter's board is considering the offer, but that's all the information we have for now. No formal response has been made, so we'll just have to wait and see how this plays out.
KitGuru Says: While Twitter has a huge userbase, the company has always struggled with the monetisation side of things, especially compared to rivals like Facebook. Elon Musk might have some good ideas for the platform, but this also comes at a time where there is much concern over the amount of power tech billionaires have managed to gain.
