April is starting with a bang, courtesy of Elon Musk. The founder of Tesla, SpaceX, and Starlink, to name a few, started the month off with a large stock purchase in Twitter. According to the AP, Elon Musk now has a share purchase in Twitter worth US$2.9 billion.
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Soon after the Elon Musk and Twitter stock purchase story broke, Twitter verified that he was now indeed the largest shareholder in the company. That prompted Twitter to offer Musk a seat on its board which came with some caveats. Elon Musk would not be able to purchase much more stock in Twitter, and he would have to act in the company’s best interests should he take the board seat.
Speculation was that Musk would take the board seat and perhaps affect changes he wanted to see on the platform. But Musk declined the offer on its expiration which fired up rumors that he was planning a hostile takeover of Twitter. Now, it seems the rumors were true. Elon Musk has thrown down a US$43 billion offer for 100% of Twitter.
In a 13D regulatory filing, Elon Musk makes his best and final offer of US$54.20 per share in cash, which is a 54% premium over the closing price. Musk also intends to take the company private, read more of the SEC filing below:
As I indicated this weekend, I believe that the company should be private to go through the changes that need to be made.
After the past several days of thinking this over, I have decided I want to acquire the company and take it private.
I am going to send you an offer letter tonight, it will be public in the morning.
Are you available to chat?
Best and Final:
a. I am not playing the back-and-forth game.
b. I have moved straight to the end.
c. It’s a high price and your shareholders will love it.
d. If the deal doesn’t work, given that I don’t have confidence in management nor do I believe I can drive the necessary change in the public market, I would need to reconsider my position as a shareholder.
i. This is not a threat, it’s simply not a good investment without the changes that need to be made.
ii. And those changes won’t happen without taking the company private.
My advisors and my team are available after you get the letter to answer any questionsSEC
a. There will be more detail in our public filings. After you receive the letter and review the public filings, your team can call my family office with any questions.
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Last Updated on April 14, 2022.