After deciding not to join the Twitter’s board, Elon Musk, the CEO of Tesla and SpaceX, has offered to purchase all of Twitter for $54.20 per share that is valued at $43 billion. This is according to the letter filed with the SEC. This comes after he purchased 9.2% of the company earlier in the month and was offered to join the Twitter’s board.
Twitter’s shares soared over 12% on Thursday after the news. Twitter had its biggest day since its IPO in 2013, surging more than 27% after Musk’s investment was announced last week.
According to the letter from Elon Must to Bret Taylor, Chairman of the Twitter Board, filed at the SEC, he said:
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.
He said that “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.”