Elon Musk has offered to buy Twitter for roughly $43 billion, a move that experts have classified as a hostile takeover of the social media company. Things have been extremely tumultuous at Twitter ever since Musk’s 9.2 percent share in the company was disclosed. Twitter’s stock shot up by 27 percent and has continued to soar since. But the way Musk declared his Twitter stake has become another hot topic of conversation. Musk initially filed a Schedule 13G with the Securities and Exchange Commission (SEC), classifying him as a passive investor, but he soon submitted a revised SEC declaration under Schedule 13D that declared he was an active investor.
The drama was far from over, however, with the late declaration of his stake in the company inviting a class-action lawsuit. After musing over the platform’s verification system and asking if Twitter was "dying", Musk decided not to take a seat on the company’s board. So far, a lot of digital ink has been spilled over Musk’s plans for Twitter, the changes he can catalyze, and whether he will take Twitter to new heights of success or drive it into the ground. Well, it looks like Musk no longer wants to just be the Tweeter-In-Chief. He now aims for a Commander-In-Chief role with a full-blown takeover.
Musk sent an acquisition offer via a letter to Brey Taylor, chairman of Twitter’s board, the contents of which have been revealed in an SEC filing. Musk offered to buy the entirety of Twitter at a price of $54.20 per stock, which he claims is 54 percent higher than the share price before he began buying a stake in the company and 38 percent higher than the closing price on the day of his SEC disclosure. Musk further adds that this is his best and final offer. More importantly, he notes that if the offer is declined, he will have to reconsider his position as one of Twitter’s biggest shareholders. Musk’s tone is quite aggressive, and he knows all too well that his departure from Twitter will almost definitely pummel the share price and drive away potential investors. On the other hand, Must says it’s not a threat, but just a bad investment if he can’t make the changes he wants.
Why Does Musk Want To Buy Twitter?
Musk, the self-proclaimed free speech absolutist, claims in his letter that he has come to a realization that Twitter cannot serve the tenet of free speech, and it needs to go private to make the necessary changes. “Twitter has extraordinary potential. I will unlock it,” he adds. Not too long ago, Musk asked his followers if they thought Twitter was abiding by the idea of free speech, since the platform acts as the de facto public town square. A majority of his followers voted no as a response to his question, and soon after, the Tesla chief tweeted that he was thinking about launching his own social media platform. But if the history of upstarts like Gettr, Rumble, and Trump-backed Truth Social are anything to go by, running a social media platform is no cakewalk. Musk is aware of that, and as many experts and his own followers often say, his best bet at running a social media entity would be to buy Twitter.
The meme-loving Tesla and SpaceX chief is doing just that. Musk makes it clear in his letter that he doesn’t have confidence in Twitter’s management. And that in order to make the required changes, he needs to take the company private with full ownership. Musk proclaims that with his purchase offer, he is “not playing a back-and-forth game,” which is a clear sign that the world’s richest man is dead serious about his plans for a Twitter takeover. Interestingly, Musk’s arrangement with Twitter ensured that he can’t buy more than a 14.9 percent stake in the company, a caveat that blocked him from attempting a coup. Given his track record in the past, it is unclear if Musk will revise his offer if Twitter’s board rejects it, and it is equally tricky to predict what he plans to do next.
Source: SEC