Elon Musk, a billionaire, has offered to buy Twitter for $41 billion in cash, claiming that the social media firm, which he has frequently criticized , needs to go private in order to make meaningful reforms.
Musk’s bid price of $54.20 per share, published in a regulatory filing on Thursday, is a 38 percent premium to Twitter’s April 1 close, the final trading day before the Tesla CEO’s more than 9% holding in the business became public.
According to Refinitiv statistics, the total deal value was determined using 763.58 million outstanding shares.
Musk turned down an offer to join Twitter’s board of directors earlier this week after reporting his investment in the company, a decision that analysts interpreted as an indication of his plan to take over the firm, as a board seat would have limited his ownership to just under 15%.
“Since investing, I’ve realised that the company, in its current form, would neither prosper nor satisfy this societal necessity. As a private corporation, Twitter must be reformed “In a letter to Twitter Chairman Bret Taylor, Musk expressed his thoughts.
“If my offer isn’t accepted, I’ll have to reconsider my position as a shareholder,” Musk continued.