Musk’s deal was not solicited by Twitter and is tantamount to a hostile takeover.
Early Thursday morning, Elon Musk tweeted documents submitted to the Securities and Exchange Commission revealing that he has made a “best and final” offer to purchase social media company Twitter.
“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,” the Tesla and SpaceX CEO wrote in a letter to Chairman of the Board Bret Taylor. “However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.”
Musk made headlines last week for purchasing 9 percent of stock in the company and, on Sunday, ultimately declining a seat on Twitter’s Board of Directors that would have limited the number of shares he could purchase.
Per terms of the deal, Musk has offered to buy all shares in Twitter at $54.20 a share, an 18 percent premium on the company’s existing stock price ($45.85 at the close of trading on Wednesday). The deal would value Twitter at $43 Billion and give Musk 100 percent of voting power, controlling the company.
Musk, the world’s wealthiest man, has a net worth of $265 Billion, per Forbes.
Musk’s deal was not solicited by Twitter and is tantamount to a hostile takeover. Musk stated that “if the deal doesn’t work…I would need to reconsider my position as a shareholder,” implying that he may sell his Twitter stock should a deal not be reached. As Twitter’s largest shareholder, Musk’s sale of stock would likely send share prices on a decline.
Twitter, in response, tweeted that it was reviewing the proposal “in the best interests of all shareholders.” However, sources in the company later revealed to NBC News that Twitter plans to hold an emergency “all-hands” meeting of employees on Thursday at 2:00 PM PST to discuss Musk’s offer.