As had been expected, Tesla founder and CEO Elon Musk has made an offer to purchase all of Twitter. Musk is offering $54.20 per share, which places a value of $43 billion on the social platform.
In a letter filed with the SEC, Musk says that he is “offering to buy 100% of Twitter for $54.20 per share in cash.” This follows Musk’s purchase of 9.1% of the company earlier in the month. Musk was set to become a member of the social networking giant’s board, but for reasons known only to Musk, he pulled out.
Musk in the letter goes on to state that Twitter has “extraordinary potential” that he will unlock.
Chairman of the Board,
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 realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.
As a result, I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before I began investing in Twitter and a 38% premium over the day before my investment was publicly announced. 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.
Since making his earlier investment in the company, Musk wrote that he has realized “the company will neither thrive nor serve this societal imperative in its current form,” adding “Twitter needs to be transformed as a private company.”
“My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder,” Musk concludes.
Musk has long been a vocal critic of Twitter, calling its policies into question. At one point Musk appeared to be mulling over whether a new, competing social media platform would need to be founded.