Elon Musk offers $41 billion to buy Twitter to ‘transform’ it

Billionaire Elon Musk, owner of SpaceX and Tesla, has made an offer to buy Twitter. It comes just days after he changed course and decided not to join Twitter’s board after buying a substantial stake in the company. Musk said in a regulatory filing Thursday that he was offering $54.20 per share, which would be about $41 billion. This is a 54% premium to Twitter’s stock price at the end of January and 38% to Twitter’s April 1 stock value.

In a memo to Twitter Chairman Bret Taylor, Musk said he was looking to buy Twitter because Twitter has “tremendous potential” as a platform for free speech. He is looking to buy Twitter into a private company to unlock its full potential, he said.

“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 a societal imperative for a functioning democracy” , did he declare. “However, since making my investment, I now realize that the business will not thrive or serve this societal imperative in its current form. Twitter needs to be transformed into a private enterprise.”

“My offer is my best and last offer and if it is not accepted, I will have to reconsider my position as a shareholder,” he added. “Twitter has tremendous potential. I’m going to unlock it.”

Musk recently purchased 73,115,038 shares of Twitter, or about 9.2% of the company, making him the company’s largest single shareholder.

Musk has openly criticized Twitter over the years. Just recently, he posted to his 80 million followers whether or not Twitter is dying.

Twitter went public in 2013 with an IPO. When Musk bought his 9.2% stake in Twitter this month, the company’s stock price had its best day in nearly a decade, jumping more than 27%. Musk’s giving up on his plans to join Twitter’s board could have signaled his intention to try to buy the company, which he is currently doing. Indeed, as a member of the board, Musk would have been limited to the number of shares he could own. Musk was recently sued over his decision to buy Twitter stock, saying he saved more than $140 million by waiting more than 10 days to disclose his stake in the company.

Musk just made his offer to buy Twitter today, April 14, and the social media site has already responded by confirming that it has received Musk’s offer and will “consider carefully” proposal. Twitter’s board of directors will consider whether or not accepting the offer is in the best interests of Twitter and its shareholders.

As Musk said, he could dump his Twitter stock if the board doesn’t approve his takeover proposal. Musk said he’s “not playing the back and forth game” when it comes to his offer to buy Twitter. Still, some might believe his plan is to buy stock, drive up the price, and sell for a profit. Keep checking with GameSpot for the latest news.

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