Elon Musk has offered to buy Twitter for an eye-watering £31.5 billion.
The world’s richest man has made a ‘best and final’ offer to buy the social media platform, saying the company has extraordinary potential and he will unlock it.
In a letter, he said the social media company needs to be transformed privately.
Musk bought a 9.2% share in Twitter earlier this month, but rejected a seat on its board leading to speculation he is considering a hostile takeover.
The billionaire boss of SpaceX and Tesla is an avid Twitter user and boasts over 80 million followers.
Musk’s offer price for Tesla is $54.20 per share.
That represents a 38 per cent premium to the closing price of Twitter’s stock on April 1 – the day before his 9 per cent investment was publicly announced.
In the letter, Musk told Bret Taylor, the Chairman of the Board: ‘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.’
‘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.
‘As a result, I am offering to buy 100 per cent of Twitter for $54.20 per share in cash, a 54% premium over the day before I began investing in Twitter and a 38 percent premium over the day before my investment was publicly announced.
‘My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder.
‘Twitter has extraordinary potential. I will unlock it.’
One day after he disclosed his stake, platform CEO Parag Agrawal announced the Tesla co-founder had been invited to the join the company’s board of directors, a seat he gladly accepted.
Some have speculated that Musk’s plan was always to try and take over Twitter wholesale. If he had accepted the board seat, Musk would be limited in how much of the company’s shares he could own.
Board members can’t own more than 14.9 per cent.
The Forbes billionaires’ list puts his personal fortune at $219 billion (£167 billion).
To put that in context, Twitter’s entire market value is estimated to be $37 billion (£28 billion).
Musk, 50, hails from South Africa and initially made his money by co-founding PayPal – before moving on to Tesla and SpaceX.
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