Tesla CEO Elon Musk Offers To Buy Twitter For $43B
The billionaire said that he did not have confidence in the company’s management and that it needed to undergo changes that could not happen without it being purchased.
He offered over $40 billion for the company, and said that he might sell his existing shareholding if the offer is not accepted.
Mr Musk announced recently that he had bought just under 10 per cent of the company, making him its biggest shareholders. He was offered and initially accepted a seat on its board – before announcing that he would not join after all, prompting speculation over his plans.
Now he has said that he wants to buy the company to protect “free speech” and unlock what he said is the “extraordinary potential” of the social network.
Elon Musk posts Twitter poll on his $43bn bid for company
“Taking Twitter private at $54.20 should be up to shareholders, not the board,” Mr Musk posted along with a “yes” or “No” voting option.
After less than an hour the poll had received almost 650,000 votes, with more than 83 per cent of votes aying the offer should put to shareholders.
Graeme Massie14 April 2022 22:15
Elon Musk no longer Twitter’s biggest shareholder
The Tesla boss has been displaced by Vanguard Group, which has increased its own stake in the social media platform, as Twitter considers his $43bn offer for the company.
According to The Wall Street Journal, Vanguard increased its Twitter stake to 10.3 per cent on 8 April, which is 82.4m shares. Before the move it had helf 8.4 per cent of Twitter, or 67.2m shares.
Vanguard’s stake in Twitter was worth $3.78bn at the end of trading on Wednesday.
Mr Musk owns 9.2 per cent of Twitter.
Graeme Massie14 April 2022 21:58
Musk releases letter to chairman of the board
ICYMI: Here, from the SEC filings, is the letter that Mr Musk wrote to the chairman of Twitter’s board:
Graeme Massie14 April 2022 21:45
Elon Musk’s Twitter bid a ‘long shot’ says Wall Street Journal
“Shareholders aren’t rallying behind him. The board is preparing to throw up roadblocks. And it isn’t clear that Mr Musk, despite his vast fortune, can come up with the money,” said the newspaper on Thursday.
Graeme Massie14 April 2022 21:15
Elon Musk says ‘utterly indefensible’ for $43bn offer not to be put to vote
The Tesla boss took to Twitter to respond to a tweet by Nick Short of the Claremont Institute saying that the social media platform’s board “wouldn’t the board be acting in direct opposition to the financial interests of their shareholders?”
“Absolutely. It would be utterly indefensible not to put this offer to a shareholder vote. They own the company, not the board of directors,” replied Mr Musk.
Graeme Massie14 April 2022 20:43
From self-proclaimed ‘socialist’ to ‘red pill’ anti-lockdown crusader: What are Elon Musk’s political beliefs?
ICYMI: “I prefer to stay out of politics.” Those were Elon Musk’s words when the tech exec was forced to respond to a claim by Texas governor Greg Abbott that he supported the state’s anti-abortion laws.
If so, Mr Musk has a funny way of showing it. Over his decade-plus of public fame as the chief executive of Tesla and SpaceX, the South-African-born tycoon has attacked everyone and everything, from Donald Trump and Bernie Sanders through individual regulatory officials to Covid rules, trade unions, and “pronouns”.
Graeme Massie14 April 2022 19:56
Twitter responds to Elon Musk’s offer to buy entire company
Twitter has responded to Elon Musk’s offer to buy the whole company.
“Twitter, Inc today confirmed it has received an unsolicited, non-binding proposal from Elon Musk to acquire all of the Company’s outstanding common stock for $54.20 per share in cash,” it said in the release.
“The Twitter Board of Directors will carefully review the proposal to determine the course of action that it believes is in the best interest of the Company and all Twitter stockholders.”
Graeme Massie14 April 2022 19:49
Can Elon Musk afford to buy Twitter?
The Tesla CEO is the world’s richest man, with a personal fortune of around $259bn on Thursday, according to Bloomberg.
He already owns 9.2 per cent of Twitter, therefore it would cost him around an additional $40bn to take full control of the social media platform.
The problem is that Mr Musk has been very open about the fact that he keeps a low reserve of cash on hand. He sold a slice of his Tesla stock last year, but after taxes that would have netted him around $14bn in cash.
He owns almost 200m stocks in the electric vehicle maker, worth around another $200bn, but still needs to find $25bn in cash to buy Twitter, if the board agrees to sell it to him.
If they do not, then Mr Musk can attempt a hostile takeover of the company, in which he makes direct offers to shareholders for their stakes in the company, or tries to gain proxy control of enough shares to replace the board.
In his Thursday SEC filing, it was stated that the “source of funds” for his takeover bid was “other.”
Graeme Massie14 April 2022 19:41
What could Twitter look like under Elon Musk?
Elon Musk’s history on Twitter could bring extra scrutiny of the social media site just as stricter rules around online content are coming into force, experts have said.
The billionaire Tesla and SpaceX boss has proposed buying “100% of Twitter for $54.20 per share in cash”, valuing the company at 41.39 billion dollars (£31.58 billion).
Graeme Massie14 April 2022 19:27
Elon Musk says he has a Plan B if Twitter bid rejected
The Tesla CEO was asked if he had another lineof attack if his $43bn offer for the social media platform was rejected.
“There is,” he told a TED Talk in Vancouver, Canada, on Thursday, when asked for more details.
“For another time I think,” he added.
Graeme Massie14 April 2022 19:10