In a move that would make an excellent script for The Social Network sequel, Elon Musk offered to buy Twitter and take it private for $43 billion. Musk says the company has “extraordinary potential” and that he can unlock it.
- He offered to pay $54.20 per share in cash, representing a 38% premium over the price on April 1, the last trading day before Musk disclosed his 9.2% stake in Twitter, making him the largest shareholder.
- Musk accepted a seat on Twitter’s board of directors after acquiring the stake but eventually declined, prompting people to speculate that Musk could try to take over the entire company.
Musk's Intentions: According to a securities filing, in a letter, Musk told Twitter Chairman Bret Taylor that he invested in Twitter because he feels the company has the “potential to be the platform for free speech around the globe.” Musk said he wanted to buy Twitter and take it private because the company can “neither thrive nor serve” free speech in its current state.
The Road Ahead: Twitter stated that its board of directors would “carefully review” Musk’s proposal before making a decision. On Sunday, Twitter CEO Parag Agrawal warned of “distractions ahead,” referring to Musk’s decision not to join the company’s board of directors. Regarding their potential decision, Musk stated, “My offer is my best and final offer, and if it is not accepted, I would need to reconsider my position as a shareholder.”