Elon Musk is trying to buy Twitter
The billionaire is offering $43 billion in hostile takeover bid
- Mr Musk is offering $72.87 per share, a 38 per cent premium on Twitter's last traded price
- He said he believes the company can not be a "platform for free speech around the globe" without being transformed
- The company's shares jumped 12 per cent in pre-market trading
Elon Musk has only recently bought a big chunk of Twitter, making him the single biggest shareholder of the social media platform. But now, Bloomberg reports that the Tesla and SpaceX founder has launched a $43 billion hostile takeover, offering shareholders $54.20 per share.
Musk announced the offer on Thursday as part of a disclosure to the US Securities and Exchange Commission. Based on previous statements (mostly in the form of tweets), Musk would love to change his favorite social network quote significantly. He has expressed that he thinks the platform might be dying in its current form, with a lot of big accounts with huge follower numbers rarely posting. Bloomberg cites a letter Musk directed at the Twitter board, saying that Twitter “will neither thrive nor serve [its free speech] societal imperative in its current form. Twitter needs to be transformed as a private company.”
Musk has also expressed an interest in a few new features, like the addition of an edit button that would allow users to retroactively change tweets or a verification mark for those paying for the social network’s premium subscription, Twitter Blue.
As for raw numbers, Musk can easily afford the takeover. He is supposedly worth around $260 billion, so a $43 billion takeover would make nothing more but a small dent for his cash flow.
The billionaire previously rejected a seat on Twitter’s board, which would have given him more power over the social network’s future, but would have also stopped him from launching a takeover like the one he is now pursuing. It would seem like a spot at the board wasn’t enough for the billionaire.
Meanwhile, some trouble is brewing for Musk’s initial investment in Twitter. A shareholder has launched a class action lawsuit, saying that Musk didn’t disclose his 5% stake fast enough.
Here’s what will happen. Twitter won’t accept, he will sell. Share prices will plummet, he can buy it at a fraction of what he offered previously. Either way, Elon doesn’t lose, he plays to win!