Elon Musk wants to buy Twitter
On April 4th, 2022, Elon Musk announced that he had purchased 9.1 percent of Twitter. The news that the world’s richest man was now (briefly) the largest shareholder in his preferred social media platform sent the stock price soaring and many a keyboard a-typing. As a board member, Musk would have been restricted from acquiring more than a 15 percent share of ownership. Then, yesterday, Musk filed with the SEC his offer to take over the company.
“I believe free speech is a societal imperative for a functioning democracy,” Musk said in the filing. “I now realize the company will neither thrive nor serve this societal imperative in its current form.”
Twitter shares closed at $45.08, down just under 2%, well below Musk's offer of $54.20 per share. That's generally a sign that some investors doubt the deal will go through. The stock remains down from its 52-week high of about $73.
Musk called that price his final offer, although he provided no details on financing. The offer is non-binding and subject to financing and other conditions.
Twitter hasn't done as well as its social media rivals and lost money last year. The company reported a net loss of $221 million for 2021 largely tied to the settlement of a lawsuit by shareholders who said the company misled investors about how much its user base was growing and how much users interacted with its platform. Its co-founder Jack Dorsey resigned as CEO in late November and was replaced by Agrawal.
Twitter co-founder and former CEO Jack Dorsey has finally opened up on Elon Musk’s offer to buy Twitter for $43 billion. Last week, the Tesla CEO proposed an offer to buy the microblogging site for $54.20 per share in cash. The board of directors has issued a new “shareholder rights plan” to block Musk’s offer, which comes as a major setback to the billionaire’s efforts to take full control of Twitter.
Speaking at the TED 2022 conference in Vancouver last week, the Tesla CEO said he has plan B if Twitter doesn't accept his offer. He hasn’t revealed details of his next move yet.