Elon Musk has made an offer he called his “best and final” to buy Twitter, saying he can unlock its full potential.
Musk also said that he may have to “reconsider” his investment in the company if the offer is not accepted.
In a filing with the SEC on Thursday, Musk offered to purchase the entirety of Twitter for a premium on the company’s traded values — $54.20 per share.
Speculation had been growing about Musk’s intentions for Twitter after he declined to join the company’s board last weekend.
The filing states that Musk’s proposal is “to acquire all of the outstanding Common Stock of the Issuer not owned by the Reporting Person for all cash consideration valuing the Common Stock at $54.20 per share.” The offer is “a 54% premium over the closing price of the Common Stock on January 28, 2022,” and “a 38% premium over the closing price of the Common Stock” the day before Musk’s investment in Twitter was publicly announced.
Additionally, the filing interestingly states that Musk intends to delist the company and take it private.
“If the Proposed Transaction is completed, the Common Stock would become eligible for termination of its registration… and would be delisted from the New York Stock Exchange,” the document says.
The filing goes on to say that Musk has no intention of selling any of his current position in the company and will continue to reserve his right to invest more in the future and interact with the company’s Board and strategic operations.
However, it also says that if his proposal is not accepted, he would need to “reconsider” his position as a shareholder.
Over the last few weeks, Musk has been very active in his interest and investments in the company.
In an SEC filing from early April, it was confirmed that Musk purchased roughly 73.4 million shares in the company — making him the largest shareholder in Twitter. According to the Financial Times, founder Jack Dorsey only holds a 2.25% stake.
According to an additional filing with the SEC, Musk was offered a position on the Board, a proposition he refused on April 9.
Twitter’s CEO Parag Agrawal shared publicly that Musk had refused the opportunity, noting to company employees there would be facing “distractions ahead.” The post led people to believe that Musk had intentions of a potential hostile takeover of the company, which has now been confirmed.
Elon has decided not to join our board. I sent a brief note to the company, sharing with you all here. pic.twitter.com/lfrXACavvk
— Parag Agrawal (@paraga) April 11, 2022