{"id":1056567,"date":"2022-04-14T18:15:04","date_gmt":"2022-04-14T18:15:04","guid":{"rendered":"https:\/\/www.ghanamma.com\/2022\/04\/14\/elon-musk-offers-to-buy-twitter-for-41-billion\/"},"modified":"2022-04-14T18:15:04","modified_gmt":"2022-04-14T18:15:04","slug":"elon-musk-offers-to-buy-twitter-for-41-billion","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2022\/04\/14\/elon-musk-offers-to-buy-twitter-for-41-billion\/","title":{"rendered":"Elon Musk offers to buy Twitter for $41 billion"},"content":{"rendered":"

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Elon Musk talks at the Automotive World News Congress at the Renaissance Center in Detroit, Michigan, January 13, 2015. REUTERS\/Rebecca Cook\/File Photo<\/p>\n<\/figcaption><\/figure>\n<\/div>\n

Elon Musk has offered to buy Twitter\u00a0for about $41 billion in cash, saying the social media company he has often criticized needs to go private to see effective changes.<\/p>\n

Musk\u2019s price of $54.20 per share, which was disclosed in a regulatory filing on Thursday, represents a 38% premium to Twitter\u2019s April 1 close, the last trading day before Tesla\u00a0CEO\u2019s more than 9% stake in the company was made public.<\/p>\n

The billionaire rejected an offer to join Twitter\u2019s board earlier this week after disclosing his stake in the company, a move which analysts said signaled his intention to take over the company as a board seat would have limited his stake to just under 15%.\u00a0<\/p>\n

\u201cSince 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,\u201d Musk said in a letter to Twitter Chairman Bret Taylor.<\/p>\n

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Musk, who calls himself a free-speech absolutist, has been critical of the social media platform and its policies, and recently ran a poll on Twitter asking users if they believed the platform adheres to the principle of free speech.<\/p>\n

\u201cMy offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder,\u201d Musk added.<\/p>\n

Twitter will review Musk\u2019s offer with advice from Goldman Sachs & Co and Wilson Sonsini Goodrich & Rosati, a source told Reuters.<\/p>\n

The company\u2019s shares jumped 12% in premarket trading, while those of Tesla fell about 1%. The total deal value was calculated based on 763.58 million shares outstanding, according to Refinitiv data.<\/p>\n

Musk has amassed over 80 million followers since joining the site in 2009 and has used the platform to make several announcements, including teasing a go-private deal for Tesla that landed him in hot water with regulators.<\/p>\n

He has also been sued by former Twitter shareholders who claim they missed out on the recent run-up in its stock price because he waited too long to disclose his stake.\u00a0<\/p>\n

Twitter\u2019s lower-than-expected user additions in recent months have raised doubts about its growth prospects, even as it pursues big projects such as audio chat rooms and newsletters to end long-running stagnation.<\/p>\n

\u201cIt would be hard for any other bidders\/consortium to emerge and the Twitter board will be forced likely to accept this bid and\/or run an active process to sell Twitter,\u201d Wedbush Securities analyst Daniel Ives wrote in a client note.<\/p>\n

\u201cThere will be host of questions around financing, regulatory, balancing Musk\u2019s time (Tesla, SpaceX) in the coming days but ultimately based on this filing it is a now or never bid for Twitter to accept,\u201d Ives said.<\/p>\n

Musk said Morgan Stanley was the financial adviser for the offer.<\/p>\n

\u201cTwitter has extraordinary potential. I will unlock it,\u201d Musk said in his letter.<\/p>\n

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