Elon Musk offers to buy Twitter for $41,4 billion.
Elon Musk has made an offer to buy Twitter (TWTR) and take it private, saying he believes the company needs to be "transformed."
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.
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.
Musk says he believes in the potential of Twitter and that the social media company needs to be transformed.
"My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder," Musk said in the filing.
However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form, he said in a letter to Twitter.
The letter was addressed to Bret Taylor, the chair of the Twitter board. It concludes: "Twitter has extraordinary potential. I will unlock it."
Twitter issued a statement Thursday confirming that it had received the offer. The company said its board would carefully review the proposal.
Musk did not reveal how he intends to fund his purchase. He said he has hired Wall Street giant Morgan Stanley (MS) as his financial advisor for the transaction.
It's very possible that Musk won't need to sell Tesla shares and instead will be able to use them as collateral to borrow the money he needs to buy Twitter, Ives said.
Taking a company private, or keeping it private, reduces the oversight the watchdog agency has on its operations, It can work in its true potential, he believes.