The boss of Tesla, who has become the largest shareholder in the social network, believes that the company must exit the stock market in order to prosper.
The soap opera between Elon Musk and Twitter continues with a major twist. The billionaire has filed a buyout offer for the social network he wants to acquire at a price of $54.20 per share. This would represent a total of 40 billion dollars, which Elon Musk says he wants to settle in cash.
Read alsoElon Musk becomes first shareholder of the social network Twitter
For Twitter shareholders, this offer would represent a premium of 54% compared to January 28, the date when Elon Musk began to buy shares of the social network. The latter were worth 45 dollars each on Wednesday. When the offer was announced, Twitter shares jumped more than 10% in pre-market trading in New York.
«Twitter’s board of directors will carefully review the offer to determine the course of action it believes is in the best interests of the company and all Twitter shareholders.“, said the group.
«This is my last offer»
In a letter to the chairman of the board of directors of Twitter, Elon Musk indicates that it is “of my best and my last offer. If it is refused, I should reconsider my place as a shareholder.The entrepreneur currently holds just over 9% of the company’s capital.
The boss of Tesla and SpaceX explains in his letter that he “realized that Twitter will not thrive in its current form [d’entreprise cotée en Bourse, NDLR], and will not be able to fulfill its societal mission. Twitter needs to be transformed and become a private company again.” He adds : “Twitter has enormous potential, and I’m going to unleash it.»
Read alsoElon Musk quits becoming Twitter admin
Elon Musk’s Twitter share buybacks were made public on April 4. The next day, the management of the social network offered him a director’s seat for a period of two years. In exchange, he had to undertake not to increase his stake beyond a threshold of 14.9%. While his position as a member of the board of directors was to be ratified on Saturday April 9, Elon Musk canceled everything, to everyone’s surprise.
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