(CTN News) – Elon Musk reportedly offered $54.20 a share to purchase Twitter, saying the company needs to be transformed into a private company, less than a week after first announcing a 9.2% stake in the company. Approximately $43 billion is the value of Twitter in Elon Musk’s offer.
I invested in Twitter because I believe in its potential to be the platform for free speech around the world, and I believe that free speech is an essential part of a functioning democracy,” Musk stated in a letter sent to Twitter Chairman Bret Taylor and disclosed in a securities filing.
As Elon Musk suggests, the social media company needs to go private because it cannot “thrive nor serve” free speech in its current state.
Elon Musk offering to buy 100% of Twitter for $54.20 per share in cash
As a result, he offered to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before he began investing in Twitter, and a 38% premium over the day before he publicly announced his investment. “My offer is my best and final offer, and if it is not accepted, I must reconsider my position as a shareholder.”
Twitter shares surged 12% in premarket trading after closing at $45.85 a share on Wednesday. Elon Musk has hired Morgan Stanley as a financial advisor, according to the filing.
“Twitter’s Board of Directors will carefully review the proposal to determine the course of action that it believes will be in the Company’s best interests,” the company said in a statement.
Elon Musk first revealed his stake in the social media giant on April 4. Later on, he was appointed to the board of directors of the company but later reversed that decision.
Tesla CEO Elon Musk has publicly criticized the social media giant, polling people on Twitter last month about whether they follow free speech principles. Elon Musk also hinted at building a new social network.
The shares of Twitter have been swinging in recent weeks amid the news from Elon Musk, but they are up 6% this year and 18.5% since the beginning of the month.
On the news, Tesla’s stock fell 1%.