Tesla CEO Elon Musk launched a hostile takeover bid for Twitter on Thursday, offering to buy the social giant for more than $40 billion, The New York Times reports.
Musk in a filing to the Securities and Exchange Committee offered to buy the company for $54.20 a share, or $43 billion in total.
Musk said this was his “best and final offer” and represented a 54% premium over the day before he began investing in the company in January.
“I don’t have confidence in management,” Musk said in the filing, and that he could not make the changes he wanted in the public market.
Musk in a letter to Twitter Chairman Bret Taylor said he would “need to reconsider my position as a shareholder” if the offer is not accepted.
“Twitter has extraordinary potential,” he wrote. “I will unlock it.”
So much for that:
The news comes just days after an April 4 filing revealed that Musk, who also founded SpaceX, bought a 9.2% stake in Twitter, making him the company’s largest shareholder.
Twitter announced the next day that Musk would join its board of directors but Musk ultimately backed out of the deal last week.
“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 wrote to Taylor.
“However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form,” he wrote. “Twitter needs to be transformed as a private company.”
Twitter stock falls:
Twitter’s stock briefly jumped after Musk announced he would join the board but sank after he announced he would not.
Twitter’s stock fell from a nearly 18% gain in premarket trading after Musk’s disclosure.
While Musk’s offer represents a premium from the network’s current price of around $45 a share, Twitter’s stock peaked in February 2021 at a cost of more than $77 per share.