Elon Musk Offers to Buy Twitter

Elon musk offered to buy 100% of Twitter this morning for $54.20 per share. (Slipping 420 into the price is classic Musk.) 

I made an offer https://t.co/VvreuPMeLu

— Elon Musk (@elonmusk) April 14, 2022

This means Musk is offering to pay $43 billion dollars for a company that is currently valued at $37 billion. Let’s quickly review the timeline of Elon’s Twitter takeover.

Timeline:

March 25th: Elon creates a Twitter poll asking if users believe that Twitter rigorously upholds free speech.
April 4th: Musk spends $2.6B to purchase a 9.2% stake in the social media company.
April 5th: Twitter CEO Parag Agrawal offers Elon Musk a board seat, with the stipulation that Musk can own no more than 14.9% of Twitter.
April 11th: Elon Musk declines the board seat.
April 14th: Elon Musk offers to spend $43B to acquire 100% of Twitter.

By “100%” of Twitter, Elon means to acquire, “all of the outstanding Common Stock of the Issuer not owned by the Reporting Person for all cash consideration valuing the Common Stock at $54.20 per share.”

This move comes just a week after Elon took a 9.2% stake in the social media company.  would give Elon immense power over the future of the company. Power that he vows to exercise, “I invested in Twitter as I believe in its potential to be the platform for free speech around the globe,” said Musk, “Twitter has extraordinary potential. I will unlock it.”

A Shrewd Businessman

What if Twitter doesn’t accept Elon’s offer? “I would need to reconsider my position as shareholder” said Musk — a subtle ultimatum that he plans to sell his massive portion of Twitter if he doesn’t get his way. 

Twitter confirmed the offer with a press release early this morning, saying that they’ll be evaluating what’s best for the company and its shareholders at an impromptu 10AM meeting. It’s unclear whether a decision will be made.

What is clear is that a shift in leadership would have dramatic implications for the stock. CEO Parag Agrawal has presented himself as a leader who isn’t opposed to censoring accounts that produce what he refers to as disinformation — a practice that Elon views as an oppressive affront to free speech.

Shares of Twitter ($TWTR) were up 3% at the time of writing.