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TESLA CEO Elon Musk offers to buy Twitter for $41Billion: ‘It has extraordinary potential – I will unlock it’

Elon Musk has made a $43 billion bid to acquire Twitter, claiming that the social media platform “needs to be reinvented as a private firm.” The billionaire and creator of electric vehicle producer Tesla, who revealed earlier this month that he owned a 9.2 percent interest in Twitter, planned to acquire the whole business for $54.20 per share in a regulatory filing on Thursday. “I invested in Twitter because I think it has the potential to be a global forum for free expression, and I believe that free speech is a social requirement for a functioning democracy,” he said in the filing.

“However, after making my investment, I’ve come to recognize that the firm, in its present form, can neither prosper nor fulfill this social necessity.” Twitter stated in a statement that it had received Musk’s offer and that its board of directors will “seriously consider the proposal.” Before the market opened, Twitter’s stock soared 8.5 percent to $49.75. Prior to Musk’s bid, the social networking platform was valued at $37 billion.

Musk said his unsolicited approach is his “best and last offer” for Twitter, which he described as having “amazing potential.” He further said that if his offer is turned down, he would “reconsider” his investment in the firm. Musk, who launched SpaceX, said on April 4 that he had purchased a $2.9 billion stake in Twitter, making him the company’s largest stakeholder. The firm announced at the time that Musk would join its board of directors, but Twitter CEO Parag Agrawal stated on Sunday that Musk had changed his mind and would no longer serve on the board.

Musk’s $43 billion bid for Twitter equals about a sixth of his $259 billion wealth, making him the world’s richest person, according to Bloomberg.

Musk’s plan to purchase Twitter has been termed an “aggressive hostile takeover” by Wedbush Securities analyst Dan Ives, who believes the deal will succeed. He predicts that Twitter’s board will have to either accept his offer or seek alternative offers.

“Any other bidders/consortium would have a hard time emerging,” Ives added. “There will be a slew of concerns in the following days about funding, regulatory, and balancing Musk’s time (Tesla, SpaceX), but based on this filing, it’s a now or never offer for Twitter to accept.”

Financial behemoths BlackRock, Morgan Stanley, State Street Global Advisors, and Vanguard Group are among Twitter’s other large public owners.

What is Musk’s goal for Twitter?

Musk is one of the most popular people on Twitter, with 80.5 million followers, outnumbering superstars like Kim Kardashian and Selena Gomez. However, his frequent tweeting has resulted in regulatory concerns, such as his long-running fight with the Securities and Exchange Commission when he tweeted in 2019 that he had the funds to buy Tesla for $420 per share. That didn’t happen, but it did lead the stock to rise, drawing the attention of authorities.

Musk had been anticipated, as Twitter’s biggest shareholder, to press the firm on concerns of free speech, a subject on which he has spoken out. Musk’s purchase offer letter emphasized this point, emphasizing his commitment to “free expression.” Musk also implied in his offer that he could want to modify the way Twitter works. For example, he has advocated for more access to “verified” Twitter accounts, which are marked with a blue checkmark and reserved for public figures, journalists, and other newsmakers.

Source: CBS News

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Written by Alex Bruno

Alex is a writer with a passion for space exploration and a penchant for satirical commentary. He has written extensively on the latest discoveries in astronomy and astrophysics, as well as the ongoing efforts to explore our solar system and beyond. In addition to his space-related work, Alex is also known for his satirical writing, which often takes a humorous and irreverent look at contemporary issues and events. His unique blend of science and humor has earned him a dedicated following and numerous accolades. When he's not writing, Alex can often be found stargazing with his telescope or honing his comedic skills at local open mic nights.

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