Elon Musk (NASDAQ:TESLA) had recently disclosed in a Securities and Exchange (SEC) filing that he had bought an over 9 percent stake in the social media platform Twitter. As a majority shareholder, he was offered a seat on the board but refused it. This lead to speculation that he was looking for a hostile takeover. He also took potshots in his different style of communication at Twitter. The speculation seem to have come true as he has made a takeover cash offer of tens of billion of dollars.
Musk filed an updated 13D on Thursday, with the SEC which stated that he would pay $54.20 in cash per share. He sneaked in a 420 in his offer, adding more speculation as he was in trouble with the SEC in 2018 when he said that he would take Tesla private at $420 but that tweet proved to be a false and misleading statement, as per later investigations on that matter, leading to a fine and more.
According to Bloomberg, Twitter has a value of $37 billion. Musk has offered to buy it for approximately $43 billion as per the stocks recent share price but this would not dent his fortune. According to Forbes, Elon Musk is the richest man in the world and is about $100 billion ahead of the second richest man in the world.
Elon Musk has used Twitter for almost all his posts similar to former president Donald Trump. He has not been suspended from the platform like Trump. However, he also calls himself an advocate of “free speech” mentioning it as one of the reasons he wants to takeover the company and make it private.
Elon Musk sent a letter on April 13, to Bret Taylor, the Chairman of Twitter (NASDAQ:TWTR). He mentioned that he was offering $54.20 per share. He said that he would unlock the extraordinary potential of Twitter and would have to reconsider his position as shareholder if his offer was not considered.
Meanwhile, Tesla stock fell by almost 2 percent as Elon Musk, the CEO of Tesla, SpaceX, The Boring Company and Neuralink had grandiosely told Jack Dorsey, the founder of Twitter that it would be difficult to run big companies simultaneously. Incidentally, Musk is running 4 big companies and now wants to take over Twitter. This might be making Tesla shareholders wary?
The board at Twitter acknowledged that Elon Musk had made an offer for the social media platform. The company has reportedly called for a board meeting today; to discuss the offer.
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