[guest post by Dana]
Twitter, Inc. (NYSE: TWTR) today confirmed it has received an unsolicited, non-binding proposal from Elon Musk to acquire all of the Company’s outstanding common stock for $54.20 per share in cash.
The Twitter Board of Directors will carefully review the proposal to determine the course of action that it believes is in the best interest of the Company and all Twitter stockholders.
According to an SEC filing, Musk has offered to acquire all the shares in Twitter he does not own for $54.20 per share, valuing the company at $41.4 billion. That represents a 38% premium over the closing price on April 1, the last trading day before Musk disclosed that he had become Twitter’s biggest shareholder, and an 18% premium over its closing price Wednesday.
Musk said the cash offer was his “best and final offer,” according to the SEC filing, adding that if it’s not accepted he would have to reconsider his position as a shareholder.
And here is an excerpt from Musk’s letter to Twitter:
“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,” he said in the letter to Twitter. “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.”
He concludes his letter with:
“Twitter has extraordinary potential. I will unlock it.”
From Dan Ives, tech analyst with Wedbush Securities:
Musk is putting the Twitter board’s backs against the wall. The premium is at a level that will be hard to see other bids occurring.
According to Bloomberg’s Billionaire Index, Elon Musk has a net worth of $259B. And from one billionaire to another, here’s how Mark Cuban responded to the news:
My conclusion, @elonmusk is fucking with the SEC. His filing w/the SEC allows him to say he wants to take a company private for $54.20 😂
Vs his "Am considering taking Tesla private at $420. Funding secured" Price go up. His shares get sold. Profit⬆️ SEC like WTF just happened.
— Mark Cuban (@mcuban) April 14, 2022