Billionaire Elon Musk wants to buy Twitter, his offer reaches $ 43 billion

Billionaire and Tesla boss Elon Musk wants to buy Twitter. It already has a 9.2 percent share in the operator of the social network of the same name, making it its largest shareholder. According to Bloomberg, the company estimates its “best and final” offer at about $ 43 billion (963.4 billion crowns). Twitter has said it will consider its offer.

The richest person in the world is offering $ 54.20 in cash per share, which represents a 54 percent premium compared to the closing price of January 28. That’s according to Musk’s announcement to the US Securities and Exchange Commission. Shares of Twitter gained more than ten percent before the start of trading today, after its opening around 16:00 CET they had a good over three percent, but after 20:00 CET they depreciated 0.6 percent. According to Musek, the company has extraordinary potential, which he will fully develop, quotes billionaire Bloomberg. In a announcement to the US regulator, Musk stated that he planned to withdraw the company from the stock exchange.

“I have invested in Twitter because I believe in its potential to become a platform for freedom of speech around the world. I believe that freedom of speech is a social imperative for a functioning democracy,” Musk said in a statement. “Since I became a shareholder in the company, however, I realize that in its current form, it will neither prosper nor serve this social imperative. Twitter needs to be transformed into a private company,” he added.

Twitter said it had received Musk’s non-binding offer and would decide whether it was in the best interests of shareholders to accept it or to continue operating as a publicly traded company.

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Musk said last week that it had acquired a 9.2 percent stake in Twitter, making it its largest shareholder. Twitter chief Parag Agrawal said on Saturday that Musk would not be a board member. According to the previous agreement, he was to hold the position of director until 2024. He was not allowed to own more than 14.9 percent of Twitter’s shares alone or in the group during his term and 90 days after termination. Some analysts later speculated that Musk declined a position on the board to gain a larger stake in the company.

One of today’s most famous engineers can afford to take over Twitter. According to ladder Bloomberg’s billionaires account for about $ 259 billion, while Twitter’s market valuation is around $ 37 billion.

Bid may be too low

Musk announced on Twitter today that this is his best and latest offer. Should the company decide to reject it, it will consider its further engagement in it. “It’s not a threat, it’s just not a good investment without the changes that need to be made,” Musk wrote.

Whether the statement is intended as a threat or not, according to the DPA, it is a transparent attempt to remind shareholders that Twitter shares, which have recently strengthened thanks to Musk’s engagement, may quickly start to decline again.

Subsequently, in an interview with Chris Anderson in the Ted Conference format in Vancouver, Musk said when asked if he had the finances to do business, “I have enough assets. I can do it if I can.” He reiterated that a public platform that is massively credible and widely inclusive is extremely important for the future of civilization.

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Saudi Prince Alwaleed bin Talal previously wrote on Twitter that, as one of the largest and longest-investing shareholders, he was rejecting Musk’s offer. Musk told Anderson that if his bid failed, he had Plan B, but declined to clarify it.

The offer of $ 54.20 per share is “too low” to be accepted by shareholders or the board of directors, said Adam Crisafulli of Vital Knowledge. He added that the company’s shares had risen to $ 70 less than a year ago.

“This soap opera will end with Musk being the owner of Twitter after this aggressive hostile takeover,” said analyst Daniel Ives of Wedbush. According to him, another candidate or consortium will hardly appear and the Twitter board will probably be forced to accept Musk’s offer.

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