Elon Musk wants to buy Twitter for 100% of the company and take it private.
The SpaceX and Tesla CEO filed a Schedule 13D with the SEC updating his proposal for the social media company.
But that’s not all.
The Dogefather says he will sell his entire stake if they do not agree to these terms.
I will be breaking all of it down below.
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Elon Musk makes Twitter an offer
Elon tweeted this morning that he “made an offer” and shared a link to his filed Schedule 13D.
I’ll be leaving the link to the report down below, but I’d like to break it down for you first.
The name of the reporting person is indeed Elon Musk, so this proposal comes directly from him, not his team.
The SEC report shows the SpaceX CEO currently owns 73,115,038 shares of Twitter stock (TWTR), or a 9.1% stake in the company.
Elon Musk is now proposing to acquire all of Twitter’s outstanding common stock at a $54.20 per share cash deal.
Because it’s only a proposal at the moment, the deal is non-binding for now until conditions and receipts require legal agreements and approvals.
If the proposed transaction is completed, the Common Stock would be terminated and delisted from the New York Stock Exchange as the SpaceX CEO takes the company private.
Elon Musk scripts on the full acquisition of social media company Twitter
Here is Elon’s proposal on the SEC report:
[Bret Taylor
Chairman of the board,
I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy.
However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.
As a result, I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before I began investing in Twitter and a 38% premium over the day before my investment was publicly announced. My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder.
Twitter has extraordinary potential. I will unlock it.]
Best and final
Elon Musk says his offer to buy Twitter is best and final.
The Tesla CEO states that he will not be playing back-and-forth games.
“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.”
Now, the CEO makes it very clear that this is not a threat, but simply not a good investment without the changes he seeks to make in the social media company.
He says those changes will not happen without taking Twitter private.
The Twitter management team will have Musk’s advisors available to them after they’ve received the proposal.
There will be more details in their public filings, according to Elon.
You can view the official SEC report here.
Will Elon Musk buy Twitter?
I’d love to hear your thoughts on the topic.
Elon Musk wants to provide the world with a platform that allows free speech as he believes it is essential in a democratized society.
This makes sense, right?
What are the challenges of providing the world with a free speech platform?
If the proposal is denied, how will this make you feel about Twitter?
Be sure to comment down below.
As for me, I think he should buy the SEC.
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About The Author
The fundamental principles of business are being overlooked. Allow him to purchase it and then it won’t be supported by a society demanding corporate social responsibility. A hostile takeover is simply morally and ethically wrong.
Let’s start a discussion!