Elon Musk recently bought a 9.2 percent stake in Twitter. Now, the executive wants to buy the entire company for $41 billion so that he can transform it as a private company.
“My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder,” Musk said. Musk’s offer price of USD 54.20 per share, which was disclosed in a regulatory filing on Thursday, represents a 38 per cent premium to Twitter’s April 1 close, the last trading day before the Tesla CEO’s more than 9 per cent stake in the company was made public.
Musk and Twitter did not disclose the reason for the u-turn. Musk said in a regulatory filing on Monday he could now increase his 9.1 per cent stake in Twitter or push the company to pursue transactions, even though he has no such plans at this time. There was no sign that Twitter was worried that a hostile bid from Musk was imminent. In announcing the development, Twitter disclosed no shareholder rights plan, known as a “poison pill,” that would force dilution if Musk tried to raise his stake above a certain threshold.