Elon Musk, CEO of electric vehicle manufacturer Tesla (TSLA), has announced a $41.3 billion cash offer for Twitter (TWTR).
According to a filing with the US Securities and Exchange Commission, the offer price of $54.20 a share represents a 38 percent premium to the stock’s price the day before Musk disclosed his interest in the firm earlier this month.
Musk aims to take the firm private to “complete the modifications that need to be made,” according to a text message he sent to Twitter Chairman Bret Taylor that was included in the filing.
Musk chastised the social media site in late March for failing to enforce free speech standards, claiming that the platform functions as a “de facto public town square” and that this failure harms democracy.
“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy,” Musk stated.
Following Musk’s filing, Justin Sun, the creator of the Tron blockchain, tweeted a thread in which he expressed an interest in acquiring the firm for $60 per share.
“I invested in Twitter because I think it has the potential to develop into a worldwide platform for free speech,” Musk said. “I think that freedom of expression is a necessary social condition for a functioning democracy.”
Following Musk’s filing, Justin Sun, the creator of the Tron blockchain, tweeted a thread in which he expressed an interest in acquiring the firm for $60 per share.
Twitter’s stock increased more than 12% in premarket trading on the announcement. They were last selling for just less than $49, an increase of 6.4 percent.
According to Reuters, Twitter intends to conduct a town hall meeting with its staff on Thursday at 5 p.m. Eastern time (21:00 UTC) to discuss Musk’s acquisition bid.
Musk purchased a 9.2 percent interest in Twitter for an estimated $2.89 billion earlier this month, shortly after being named to the company’s board of directors. However, a few days later, CEO Parag Agrawal said that a board post was no longer being considered.
“My offer is my best and final offer, and if it is not accepted, I would need to reconsider my position as a shareholder,” Musk said.
Musk’s statements often create waves in the cryptocurrency world as a result of his well-known involvement with the firm. Dogecoin, a meme-based cryptocurrency, increased 11% in response to Musk’s initial Twitter investment and was up roughly 6% after Thursday’s announcement. In the previous 24 hours, the currency has increased by 5%.
Since September, Twitter has positioned itself as a crypto-friendly platform, allowing users to offer tips in bitcoin and ether.
