Back in early April, it became known that Tesla CEO Elon Musk had acquired 9.2 percent of Twitter shares. Now the richest man in the world has made an offer to take over the microblogging service completely – for 41.4 billion US dollars.
On April 4, it became known that Tesla CEO Elon Musk had already acquired 9.2 percent of Twitter shares on March 14. Subsequently, he was even offered the prospect of a position on the board of directors. But what many considered merely a formality ended in an about-face.
Elon Musk wants to take over Twitter – for 41.4 billion U.S. dollars
Because Elon Musk unexpectedly decided against a leadership position at Twitter. Since then, it has been speculated what is behind his decision. Now it should be clear, because Musk has made an offer to take over Twitter “completely” – for 41.4 billion US dollars.
However, a position on the Board of Directors would in turn have prohibited him from acquiring more than 14.9 percent of the shares in the coming years of his term of office. Some analysts had already speculated in advance about a complete takeover. But what many considered unrealistic could now actually become reality.
Musk makes offer
As the news agency Reuters reports, Elon Musk has now made an offer and wants to take over Twitter for 54.20 US dollars per share. This is according to a regulatory report published on April 14, 2022.
The offer price exceeds the share price on April 1, the last trading day after it became known that Musk had already acquired 9.2 percent of Twitter shares, by 38 percent in the process. Reuters puts the total value of the deal at 763.58 million shares outstanding.
Elon Musk wants to take Twitter off the stock market
The news agency also quotes from a letter Musk sent to Twitter Chairman Bret Taylor: “Since my investment, I have come to realize that the company in its current form will neither thrive nor serve this social imperative. Twitter needs to be transformed into a private company.”
Specifically, Musk wants to first acquire Twitter and then take it off the stock market. The letter goes on to say, “My offer is my best and final offer and if it is not accepted, I will have to reconsider my position as a shareholder.” Twitter shareholders, meanwhile, have previously filed a lawsuit against Musk. The accusation: securities fraud.