Entrepreneur Elon Musk has made an offer to buy Twitter. According to a document filed with the US Securities and Exchange Commission (SEC), Musk offered to buy all the shares he does not own in the company at $54.20 a share — which would take the company for granted. US$ 43.4 billion.
The offer represents an increase of 38% from its closing price on April 1, the last day of trading before Musk reveals he has become Twitter’s largest shareholder, and up 18% from its closing price on Wednesday. market.
Musk said this was his “best and last offer,” according to the filing filed with the SEC, adding that if it wasn’t accepted, he would have to reconsider his position as a shareholder.
Tesla’s CEO sent an offer letter to the company on Wednesday night, according to the document.
“I invested in Twitter because I believe in its potential to be the platform for free expression around the world, and I believe that free expression is a social imperative for a functioning democracy,” he said in the letter sent to Twitter.
“However, since I made my investment, I now realize that the company will not thrive or serve this societal imperative in its current form. Twitter needs to be transformed as a private company.”
Earlier this month, Musk revealed that he had been buying shares in Twitter since late January, and that he had amassed a 9.1% stake since then, spending $2.6 billion on the shares he bought.
Following this disclosure, he initially accepted an offer of a seat on the company’s board of directors, a deal that included a cap on his investment in the company to a 14.9% stake. On Sunday, Twitter CEO Parag Agrawal revealed that Musk had decided not to sit on the board of directors, which removed that threshold.
Musk was silent about his plans for Twitter in the days that followed. The businessman did not reveal how he intends to finance his purchase. He said he hired Wall Street giant Morgan Stanley as his financial advisor for the transaction.
While Musk is the richest person on the planet, most of his $274 billion net worth is tied to his stakes in publicly and privately held Tesla. The CEO has been reluctant to sell Tesla shares more than he needs to due to taxes.
Twitter shares (TWTR) rose 12% in pre-trade trading on Thursday (14); Tesla (TSLA) shares fell 2%.
Twitter had no immediate response to questions about the offer.
Source: CNN Brasil
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