Elon Musk Makes Offer to Purchase Twitter for $41.3 Billion in Order to Take the Company Private
Justin Sun, creator of TRON, reacted to Musk’s offer by tweeting that he would give $60 per share, comparable to Musk’s $54.20.
Elon Musk, the CEO of electric vehicle manufacturer Tesla (TSLA), has proposed to acquire Twitter (TWTR) for around $41.3 billion in cash.
According to a filing with the Securities and Exchange Commission, the $54.20-per-share offer represents a 38 percent premium over the day before Musk’s investment in the company became public earlier this month.
Musk intends to take the company private to “go through the necessary reforms,” he stated in a text message to Twitter Chairman Bret Taylor that was repeated in the filing.
Musk attacked the social media site in late March for failing to adhere to free speech norms, claiming that it functions as a “de facto public town square” and so harms democracy.
“I invested in Twitter because I think it has the ability to serve as a global forum for free expression, and I believe that free expression is a social requirement for a functioning democracy,” Musk stated.
Following Musk’s filing, Justin Sun, the inventor of the TRON blockchain, tweeted a thread in which he stated his intention to acquire the firm for $60 per share.
Twitter’s stock jumped more than 12% in pre-market trade in response to the announcement. They were last selling at about $48.
Musk purchased a 9.2 percent stake in Twitter earlier this month for an estimated $2.89 billion, followed by a statement that he will join the company’s board of directors. However, CEO Parag Agrawal said a few days later that he was no longer considering a board post.
“My offer is my best and last offer, and if it is not accepted, I will have to reevaluate my shareholder position,” Musk said in the filing.
Due to Elon Musk’s well-documented interest in cryptocurrencies, his pronouncements often create waves in the crypto community. Dogecoin, a meme-based cryptocurrency, had an 11 percent increase in value on news of Musk’s Twitter investment.
Twitter has also acquired a reputation as a crypto-friendly site in recent months, introducing the option to send tips in bitcoin in September and expanding the capability to ether in February.