Tesla founder and CEO Elon Musk has decided to launch a takeover bid (OPA) on Twitter that values it at 43,394 million dollars (39,803 million euros)according to a statement sent by the social network to the United States Securities and Exchange Commission (SEC).
The offer presented by the employer, who for a few days has also been Twitter’s first shareholderIt’s totally in cash. Elon Musk has offered $54.20 for each Twitter share, which is a 54% premium over January 28, when Musk started buying Twitter stock, as well as a 38% premium over April 1, when he revealed his position in the company.
By taking all the shares in this operation, Twitter would be excluded from the Stock Exchange if the board of directors gives the go-ahead to the offer and the shareholders accept it.
“I invested in Twitter because I believe in the potential to be the platform for freedom of expression around the world and I believe that freedom of expression is a social imperative for a functioning democracy. However, since I made my investment I have realized that the company will not prosper or serve this social imperative in its current form. Twitter needs to transform into an unlisted company,” Musk said in a letter to the board of directors presenting his offer.
Musk is currently owner of 73.1 million shares of Twitter, equivalent to 9.1% of the share capital of the company. If the transaction succeeds, the businessman, the richest person in the world according to the Forbes list, will have to pay 39,431 million dollars (36,168 million euros) for the 90.9% that he still does not control.
According to the statement sent to the SEC, Morgan Stanley is acting as financial advisor to Elon Musk in this operation. In the letter sent to the council, you have underlined that the current offer is your best and only offer. If the council does not accept it, Musk has threatened to “reconsider” his position as a shareholder.
“Twitter has extraordinary potential. I will unlock it,” Musk has settled.