Elon Musk has made an offer to buy Twitter Inc., saying Twitter has “extraordinary potential” that he would like to “unlock.”
According to Bloomberg, Musk offered $54.20 per share in cash, valuing Twitter at about $43 billion.
Shares of Twitter jumped 5.3 percent after news of Musk’s offer was announced.
In a letter to Twitter’s board with his proposal, Musk said he believes Twitter “will neither thrive nor serve [its free speech] societal imperative in its current form. Twitter needs to be transformed as a private company.”
Twitter representatives said the company’s board would review Musk’s proposal and will make a decision that is in the best interest of “all Twitter stockholders.”
Twitter also offered Musk a seat on the board, but he declined.
Neil Campling, the head of TMT research at Mirabaud Equity Research, commented on Musk’s offer, calling it a “hostile takeover offer.”
“This becomes a hostile takeover offer which is going to cost a serious amount of cash,” Campling said. “He will have to sell a decent piece of Tesla stock to fund it, or a massive loan against it.”
Musk has already revealed some of his plans for Twitter if he is successful in buying the social media giant. On the platform, he announced that he’d like to add an edit button for tweets and give automatic verification marks to premium users.
“There will be a host of questions around financing, regulatory, balancing Musk’s time [at Tesla and SpaceX] in the coming days,” said Dan Ives, an analyst at Wedbush. “But ultimately, based on this filing, it is a now or never bid for Twitter to accept.”
Bloomberg reports that Musk said his offer was “best and final,” but his offer may give others – such as Oracle CEO Larry Ellison, who previously attempted to buy a stake in the social media company TikTok – the chance to outbid his offer.
According to the Bloomberg Billionaires Index, Musk is worth about $260 billion.
Elon Musk Purchases Stock in Twitter, Becomes Largest Share Holder
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Amanda Casanova is a writer living in Dallas, Texas. She has covered news for ChristianHeadlines.com since 2014. She has also contributed to The Houston Chronicle, U.S. News and World Report and IBelieve.com. She blogs at The Migraine Runner.