Is Twitter headed for a hostile takeover by Elon Musk?
Another day, another twist! Tesla and SpaceX founder Elon Musk, who recently disclosed a 9.2% passive stake in Twitter, has now offered to buy the company in its entirety for $54.2 per share in cash, valuing it at $43 billion. In a US Securities and Exchange Commission (SEC) filing on Thursday, Musk claimed Twitter has "extraordinary potential" and that he wants to unlock it.
Why does this story matter?
Currently, Twitter has a market valuation of around $37 billion, and Musk's offer values the tech firm at roughly $43 billion. This comes after he previously backed out of joining the company's board as his influence would be curtailed. Now, the scenario indicates that the tech giant could be headed for a hostile takeover, and might even go private in the near future.
And, he tweets about it too!
'Twitter failing to uphold free speech in current form'
Sharing his vision behind his investment—in a letter to Twitter Chairman Bret Taylor—Musk wrote, "I invested in Twitter as I believe in its potential to be the platform for free speech...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."
'Will reconsider position as shareholder if offer is rejected'
Musk said he is offering to buy Twitter in cash for $54.20/share, adding this would mean a 54% premium over the day before he began investing in Twitter and a 38% premium over the day before his investment was 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 stocks up by 13%
As soon as the news about Musk's offer got out, Twitter shares went up by 13%. On the other hand, Tesla's stocks have dived by 1.5%. Analysts believe the Tesla, SpaceX, The Boring Company, and Neuralink lead might get distracted by this new business venture.
