According to a filing made Thursday morning, Elon Musk, the controversial billionaire, has made a bid to purchase the whole social media group Twitter for $43 billion.
The hostile takeover attempt comes just days after Tesla founder Elon Musk announced that he had purchased a 9% share in the firm and that he would join its board of directors.
That swiftly backfired, and Musk and the board made a U-turn, declaring that Musk would not be joining the boardroom for the time being. Some Twitter shareholders said on Wednesday that they were intending to file a federal lawsuit against Musk, claiming that he had not disclosed his stake-building swiftly enough.
According to Bloomberg News, Musk has a net worth of $260 billion, making him the world’s richest person. Musk is offering $54.2 per share in cash. That’s a premium of 54% over the stock’s overnight closing. Morgan Stanley, an investment firm, is advising Musk.
Musk claims that Twitter has enormous potential that it has yet to realize, and believes it would be better off as a private firm.
In his thorough criticisms of Twitter, he has proposed an edit button and a separate layer of verification for premium users. He also said that Twitter lacks enough premium users since many celebrities have stopped using the network.
“If the deal doesn’t work, given that I don’t have confidence in management nor do I believe I can drive the necessary change in the public market, I would need to reconsider my position as a shareholder,” said Musk in a letter to the company’s current board.
He explained too: “[Twitter] will neither thrive nor serve [its free speech] societal imperative in its current form. Twitter needs to be transformed as a private company.”
I made an offer https://t.co/VvreuPMeLu
— Elon Musk (@elonmusk) April 14, 2022