In an amended 13D filed with the Securities and Exchange Commission on Thursday, Tesla CEO Elon Musk makes his “best and last” bid to buy 100% of Twitter. He’s making a cash offer of $54.20 per share.
Musk had to include a “420” in the deal, of course.
According to Bloomberg, Musk’s net worth is over $260 billion. Twitter’s market capitalization is estimated to be at $37 billion. According to CNBC, Musk’s offer values Twitter at $43 billion.
Musk is offering to “purchase all of the Issuer’s outstanding Common Stock not owned by the Reporting Person for full cash consideration valued at $54.20 per share.” On April 13th, the idea was delivered to Twitter in the form of a letter. Musk claims that Twitter must go private in order to undertake necessary adjustments.
“I invested in Twitter because I believe it has the potential to be the global platform for free speech, and I believe free speech is a societal requirement for a functioning democracy,” Musk wrote to Twitter chairman Bret Taylor in a letter. “Twitter has a lot of potential. “I’ll get it unlocked.”
If Musk’s bid is rejected, he says, “I would have to reevaluate my position as a shareholder.”
“The Twitter Board of Directors will carefully analyze the proposal to determine the course of action that it feels is in the best interest of the Company and all Twitter investors,” Twitter said in a press release confirming the offer.
The board of directors apparently convened at 10 a.m. ET to examine the offer, though no resolution was reached. Following the board meeting, news got out that the board isn’t interested in Musk’s offer, and that it might adopt a “poison pill” method to keep Musk from trying a hostile acquisition. At a 2 p.m. PT / 5 p.m. ET all-hands meeting, the corporation is also expected to address Musk’s offer.
Musk presented a free, live TED Talk at 10 a.m. PT/1 p.m. ET on Tuesday, when he discussed his Twitter aims, claiming he isn’t in it for the money, believing Twitter should “open source the algorithm,” and outlining how he thinks Twitter’s long-awaited edit button should operate. You may read our highlights summary here. He also alleged, without providing evidence, that the SEC misled about Musk’s lack of “financing secured” to take Tesla private in 2018.
On the news of Musk’s offer, Twitter shares were up over 13% pre-market this morning, but closed down 0.77 percent. Tesla shares fell 1.5 percent at first on fears that Twitter’s most ardent supporter — who already oversees Tesla, SpaceX, The Boring Company, and Neuralink — would be distracted by his new pet, and ended the day down 3.66 percent. Musk once advised Twitter co-founder and former CEO Jack Dorsey that running two companies at the same time is a bad idea.
Will he or will he not buy? The Twitter crisis began in earnest barely ten days ago, when it was revealed that the world’s richest man had purchased a 9.2% share in the firm. Soon after, Twitter said Musk will be added to its board of directors, only for the deal to fall through a few days later, causing Twitter CEO Parag Agrawal to warn employees that “there will be diversions ahead.”
A hostile acquisition will undoubtedly be a source of distraction for all parties concerned.
According to the SEC filing, the following is the complete text of Musk’s letter to Twitter:
Taylor, Bret
Mr. Board Chairman,
I invested in Twitter because I believe it has the potential to become a global forum for free speech, which I feel is a social requirement for a functioning democracy.
However, since making my investment, I’ve realized that the company, in its current form, can neither prosper nor serve this societal necessity. As a private firm, Twitter must be reformed.
As a result, I’m offering to buy 100% of Twitter in cash for $54.20 per share, a 54 percent premium over the day I started investing in Twitter and a 38 percent premium over the day my investment was publicly publicized. My offer is my best and final offer, and if it is not accepted, I will have to reevaluate my shareholder position.
Twitter has tremendous potential. It will be unlocked by me.
Elon Musk is a billionaire entrepreneur.
