|Elon Musk and Twitter|
Elon Musk has made a contentious offer to purchase Twitter Inc., claiming that the firm has enormous potential and that he is the one who can unlock it. The world's wealthiest individual will pay $54.20 per share in cash, a 54 percent premium over the stock's closing price on January 28 and a $43 billion value. In pre-market trade, shares of the social media business jumped 18%.
Musk, 50, made the offer after declining a prospective board position at the firm. On April 4, the billionaire, who also owns Tesla Inc., announced a 9 percent ownership in the company. Tesla's stock dropped 1.5 percent in pre-market trade as a result of the announcement.
The offer is the latest chapter in Musk's tumultuous history with the social media platform. The executive is one of Twitter's most-followed firebrands, frequently posting jokes and taunting to his more than 80 million followers as @elonmusk. He's been vocal about the improvements he'd want to see at the social media platform, and the firm granted him a place on the board when he announced his investment, which made him the company's largest individual shareholder.
Musk began soliciting feedback from other Twitter users soon after his investment was made public, proposing anything from converting Twitter's San Francisco headquarters into a homeless shelter to adding an edit button to messages and awarding automatic verification marks to premium members.
According to today's announcement, Musk notified Twitter's board of directors over the weekend that he believes the firm should be taken private. According to Vital Knowledge's Adam Crisafulli, the $54.20 per share offer is "too low" for shareholders and the board to accept, despite the fact that the company's shares exceeded $70 less than a year ago. Despite the fact that Musk is the world's richest man, he has yet to disclose how he would come up with $43 billion in cash.