Technology giant Elon Musk has offered to buy Twitter directly in a deal estimated at $43 billion, according to a filing with the US Securities and Exchange Commission ( SEC ), and Musk said in a letter to Twitter Chairman Brett Taylor, “Twitter has extraordinary potential.” His bid of $54.20 per share was his best and last, he added.
According to business insider , Twitter said it has received a non-binding offer from Elon Musk to acquire all of the company's outstanding common stock, and will carefully review the proposal to determine a course of action that it believes is in the company's best interest.
Musk is currently Twitter's largest shareholder, having revealed in early April that he has accumulated 9.2% of the company's shares. He is also the CEO of Tesla and SpaceX , and is also the world's richest person, with an estimated fortune of $259 billion.
According to a Securities and Exchange Commission report, in his letter to Taylor, Musk hinted that he might sell his shares on Twitter if his takeover offer was rejected.
"My offer is my final best offer, and if it is not accepted, I will need to reconsider my position as a shareholder," he wrote.
"I invested in Twitter because I believe it can be a platform for freedom of expression around the world, and I believe that freedom of expression is a societal necessity for a functioning democracy," Musk told Taylor.
He added, "Since I made my investment, I now realize that the company will not thrive and will not serve this societal necessity in its current form. Twitter needs to transform into a private company."
According to details of the "audio transcript" included in the SEC filing, Musk said, "If the deal doesn't work out, because I don't trust management and I don't think I can bring about the necessary change in the public in the marketplace, I will need to reconsider my position as a shareholder. This is not a threat, it is simply not a good investment without the changes that need to be made."
Musk has offered to buy all Twitter shares he doesn't own for $54.20 per share in cash, the offer representing a premium of 54% over the stock's closing price on Jan. 28, the day before Musk began buying Twitter, and 38% above the closing price on Jan. April, the day before Musk revealed his 9.2% stake in the company.