Elon Musk announced that he had a 9.2 % stake in Twitter just days ago.
Elon Musk has offered to acquire Twitter (TWTR) and take it private, claiming that the company must be “changed.”
According to an SEC filing, Musk has offered $54.20 per share for all of the Twitter shares he does not hold, valuing the firm at $43.4 billion. That’s a 38 percent premium over the stock’s closing price on April 1, the last trading day before Musk revealed he was Twitter’s largest shareholder and an 18 percent premium over its closing price on Wednesday.
According to the SEC filing, Musk stated that the cash offer was his “best and final offer,” and that if it was not accepted, he would have to reevaluate his status as a shareholder. According to the complaint, Tesla CEO Elon Musk issued the company an offer letter on Wednesday night.
Elon Musk revealed last week that he had been buying Twitter shares since late January and had amassed a 9.1 percent stake in the company, spending $2.6 billion on the shares. Following that revelation, he first accepted an offer of a seat on the business’s board of directors, with the understanding that his participation in the company would be limited to a 14.9 percent share.
Musk’s decision not to join the board of directors was announced by Twitter CEO Parag Agrawal on Sunday, removing the restriction. He is now being sued by Twitter shareholders for delayed disclosure. His come back to that is buying them out at $54 a share totaling to $43 Billion.
Although Musk is the world’s richest man, the majority of his $274 billion fortune is invested in publicly traded Tesla and privately held SpaceX, and he has been hesitant to sell Tesla stock beyond what is required to pay taxes. Tesla (TSLA) shares fell 2% in premarket trade on Thursday, possibly due to expectations that Musk will sell shares to fund cash.