Tesla founder Elon Musk has offered to buy Twitter for about $41 billion in cash, saying the social media company — which he frequently criticizes — needs to go private to see changes. effective.
The price offered by Musk was US$ 54.20 (R$ 255) per share, according to a regulatory document released on Thursday (14). The value is 38% higher than the social network’s share price on April 1. The businessman had bought a more than 9% stake in the social network, but rejected an offer to join Twitter’s board.
“Since I made my investment, I’ve realized that the company will not thrive or meet this social imperative in its current form. Twitter needs to be turned into a private company,” Musk said in a letter to Twitter President Bret. Taylor.
Musk, a self-described free speech advocate, has been critical of the social media platform and its policies, and recently took a Twitter survey asking users if they believed the platform adheres to the principle of free speech.
“This is my final offer and if not accepted, I will need to reconsider my position as a shareholder,” Musk added.
The company’s shares are up 12% in premarket trading, while Tesla’s are down about 1%. The total value of the deal was calculated based on 763.58 million shares outstanding, according to data from Refinitiv.
Musk has amassed more than 80 million followers since joining the site in 2009 and has used the platform to make several announcements, including a privatization deal for Tesla that got him in trouble with regulators.
He has also been sued by former Twitter shareholders, who claim they missed the recent share price spike because he waited too long to disclose his stake.
The entry of new users at a lower volume than expected from Twitter in recent months has raised doubts about the platform’s growth prospects, even with innovations such as audio chat rooms and newsletters.
“The Twitter board will be forced to accept this offer or pursue an active process to sell Twitter,” Daniel Ives, an analyst at Wedbush Securities, wrote in a note to a client.
Musk said Morgan Stanley was the financial adviser on the offer.
“Twitter has extraordinary potential. I will unlock it,” Musk said in his letter.
Twitter said on Thursday it would carefully scrutinize the Tesla chairman’s offer. The social network indicated in a statement that it had received “Elon Musk’s unsolicited and non-binding offer” and that its board of directors will “examine it carefully to determine the course of action that it believes best serves the interests of the company” and all shareholders. from Twitter.
with AFP
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