Elon Musk has unleashed a takeover attempt for Twitter on Thursday, offering $43 billion, or $54.20 per share, in a filing with the US Securities and Exchange Commission – just weeks after becoming the social media giant’s largest individual shareholder.
“I am offering to acquire 100% of Twitter for $54.20 per share in cash, a 54 percent premium to the day before I began investing in Twitter and a 38 percent premium to the day before my investment was publicly disclosed,” Musk said in quotes by multiple news outlets, Thursday.
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The billionaire, dubbed “The Dogefather,” is one of Twitter’s most-watched personalities, frequently tweeting memes and taunting his more than 80 million followers.
Twitter Shares Soar After The News
Twitter (TWTR) shares increased nearly 18% in pre-market trade on Thursday. The stock remains well below its 52-week high of around $73. Tesla’s stock dipped almost 1.5 percent in early trading in response to the news.
Musk’s buyout offer for Twitter is his “best and final,” he said, adding that the company possesses exceptional potential that “I will unlock.”
He said that if his offer is rejected, he will have to reevaluate his shareholder position.
An Aggressive Move By Musk
Musk, the world’s wealthiest man, clarified that his offer was not a “threat,” but rather “it’s simply not a good investment without the changes that need to be made.”
However, Neil Campling, director of TMT research at Mirabaud Equity Research, believes that “this becomes a hostile takeover offer that will cost a significant amount of money.”
I made an offer https://t.co/VvreuPMeLu
— Elon Musk (@elonmusk) April 14, 2022
Musk told Bret Taylor, the board’s chairman:
‘I invested in Twitter because I believe it has the ability to serve as a global forum for free speech, and I believe that free speech is a societal requirement for a functioning democracy.”
The outspoken CEO has also frequently used Twitter to discuss cryptocurrency, including his thoughts on Bitcoin and – perhaps – his favorite coin, Dogecoin.
DOGE total market cap at $19.15 billion on the daily chart | Source: TradingView.com
DOGE reached an all-time high of $0.75 in May last year as a result of this recognition. Dogecoin has firmly established itself among CoinMarketCap’s Top 15 biggest cryptocurrencies in terms of market capitalization.
Rejecting The Board Offer
Musk was offered a seat on Twitter’s board of directors following the disclosure of his shareholding, which he declined last week.
As a board member, Musk would be restricted to own more than 15% of the company.
Since then, much conjecture has centered on the billionaire’s next move.
He Was ‘Dissatisfied’ So He Wants To Buy Twitter
He offered to buy out Twitter because he said he was dissatisfied with the influence that comes with being the largest shareholder.
Musk is currently worth more than $260 billion, according to the 2022 Bloomberg Billionaire’s Index, compared to Twitter’s market value of approximately $37 billion.
Musk did not elaborate on how he planned to finance the acquisition. He said he had chosen Wall Street giant Morgan Stanley as his financial advisor for the transaction.
This article was first published on Bitcoinist.com
Featured image from Wccftech, chart from TradingView.com