Elon Musk, the billionaire founder and CEO of SpaceX, announced his bid to buy the social media company on Thursday (April 14) and shared a link to the Securities and Exchange Commission (SEC) filing he submitted as part of the process.
Musk laid out his plans to take over Twitter to Bret Taylor, the chair of Twitter’s board and Salesforce co-CEO. In the letter, Musk offered to buy Twitter for $54.20 per share in cash. This news comes as Musk became the largest shareholder of the microblogging platform after he bought 9.2 percent of the shares of Twitter earlier this month. And now, if the sale goes through, Musk will pay $43 billion in cash.
Musk said, “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.”
Musk noted that his offer to buy the platform represents a 54 percent premium over what he paid for his initial stake and a 385 percent premium over Twitter’s stock price just before the announcement of his investment.
He continued, “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.”
Musk is known to use Twitter regularly to share updates on Tesla and SpaceX operations. However, he faced several troubles over the years. For instance, SEC sued Musk for fraud over a Tweet in August 2018 after the billionaire wrote that he had secured funding to take Tesla private at $420 per share. Subsequently, Musk and Tesla each paid $20 million fine to settle the dispute with the SEC.