The Elon Musk and Twitter fiasco has taken a new turn. Musk is offering to buy the social media platform for more than $43 billion. Twitter reported that Musk had offered to buy the remaining shares of the company at $54.20 per share.
Previously, Elon Musk announced that he would not be joining the Twitter Board of Directors after he purchased 9.2% of the company’s shares, making him the largest shareholder.
CNBC reports that Twitter has a market valuation of around $37 billion while the Elon Musk’s offer values the company at $43 billion.
Musk stated that he invested in Twitter believing in its potential for free speech around the globe, claiming that he believes “free speech is a societal imperative for a functioning democracy.”
Elon Musk added
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 claims that the price of $54.20 was a 54% premium over the day before he began investing in Twitter and a 38% premium over the day before his investment in Twitter was publicly disclosed.
Musk also stated details of his case if the deal goes south.
If the deal doesn’t work, given that I don’t have confidence in management nor do I believe I can drive the necessary change in the public market, I would need to reconsider my position as a shareholder … This is not a threat, it’s simply not a good investment without the changes that need to be made.
Musk also said there was no further room for negotiation.
It’s a high price and your shareholders will love it … 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 CEO, Parag Agrawal announced today that the company is evaluating its options and that it is not being “held hostage” by this offer.
Speaking at the TED2022 conference held in Vancouver, Canada, Elon Musk denied the offer, claiming “I’m not sure that I will actually be able to acquire it.” The Tesla CEO also added that he had a backup plan if the offer was rejected, but he gave no further details.