Elon Musk announced that he made the “last and best” offer for Twitter, saying that the company has extraordinary potential and that he can unleash it.
It was stated that the richest man in the world, based on the closing level of January 28, will offer $ 54.20 for the whole of Twitter, with a premium of 54 percent, and if it happens, the total value of the company will reach $ 43 billion. After the offer, the shares of the social media platform gained 18 percent.
The 50-year-old billionaire announced the proposal in a filing with the US Securities and Exchange Commission on Thursday. Musk, who also controls the Tesla company, first stated that he bought 9 percent of the shares on April 4. Tesla shares tumbled 1.5 percent before the session after the news.
Musk, one of the most followed names on Twitter and sharing frequently, has 80 million followers. The famous entrepreneur shared the changes he wanted to make regarding the social media platform and was invited to the board of directors by the company after the acquisition, which made him the owner of the most Twitter shares.
“Twitter may be dying”
After the initial share purchase was heard, Musk added a correction tab, ticked premium users and turned the company’s headquarters in San Francisco into a homeless shelter. shared his ideas for the future. In another post, he pointed out that Twitter may be dying, referring to the fact that multi-follower accounts rarely tweet.
It is thought that Musk, who currently has a total wealth of 260 billion dollars, will not have difficulty in purchasing Twitter, which has a market value of 37 billion dollars. In a letter he wrote to the Twitter board, the famous billionaire emphasized that the company should be restructured as a private company, arguing that the company could neither rise nor serve freedom of expression, which is a social responsibility.
I can sell the shares if there is no deal message
It is thought that the purchasing process will not take too long. “If the deal does not happen, I will have to reconsider my shareholder position, considering that I do not have the necessary vote of confidence for management and I believe that I will not be able to make the necessary changes in the public parts,” Musk said.
In a report on the Adam Crisafulli acquisition from Vital Knowledge, the $54.20 offer is too low for the board and the stockholders, and such a low offer for stocks that saw $70 less than a year ago was accepted. He said it was difficult to achieve.