Tesla CEO Elon Musk has offered to buy social media giant Twitter for $41. 39 billion or $54.20 per share in cash.
A regulatory filing has revealed that Musk has offered $54.20 a share – a 38% premium to the closing price of Twitter’s stock on April 1, the last trading day before the Tesla chief executive’s investment of more than 9% in the company was publicly announced.
The total deal value of $41.39 billion was calculated based on 763.58 million shares outstanding.
“Since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company,” Musk said in a letter to Twitter Chairman Bret Taylor.
After launching the hostile takeover, the Tesla chief further said: “Twitter has extraordinary potential, I will unlock it.”
“I would need to reconsider my position as shareholder,” says Musk if his offer is not accepted.
Twitter is yet to respond to Musk’s proposal.Recently, Musk decided not to join Twitter Inc’s board of directors, Chief Executive Parag Agrawal disclosed.
Musk has over 80 million Twitter followers since joining the site in 2009. In past, he has used the platform to make several announcements, including teasing a go-private deal for Tesla that landed him in hot water with regulators.
