Multi-billionaire Elon Musk offers to buy Twitter, of which he is already the largest shareholder, for $41.39 billion, according to a document sent to the American Stock Exchange police officer on Wednesday. and Thursday will be revealed April 14. After this announcement, the social network announced that it would go “examine well” Elon Musk’s offer.
Mr. Musk says he is willing to pay USD 54.20 per Twitter share (EUR 49.70). This represents a “premium”, i.e. a bonus, of 21% over the title’s opening price on Thursday and 54% over that of January 28, the date Mr. Musk started investing in Twitter.
The billionaire entered the capital of the social network at the cost of 9.2%, as documents show published on April 4 by the US stock market regulator, the Securities and Exchange Commission. Twitter then offered him a seat on its board of directors, what he refused†
Musk will reconsider his presence in the capital in case of failure
The CEO of electric car maker Tesla and founder of the space group SpaceX assures that this award is: “his best offer” and that it will not be changed, adding that in case of failure he will reconsider his presence in the capital.
Musk says he believes Twitter in a letter to the board “will not thrive and fulfill its social mission” [de liberté d’expression] in its current form”† According to him, the company should “to be converted into a private limited company”ie not listed.
In his letter, Mr. Musk further assures:
“Twitter has enormous potential. I will make it happen† †
To explain his surprising takeover and rather hostile approach to the current management of the social network, the Tesla boss makes sure not to “play the classic back and forth game”preferably “get straight to the point”† Twitter shares gained 13.6% in pre-market trading after announcing its proposal.
Elon Musk’s offensive has already seen several episodes: in early April, the market learned that the investor had become the largest shareholder of the social network, holding just over 9% of the company’s capital. This entry into the capital had sparked a series of twists and turns around the role he planned to play in the company – approached for a seat on the board of directors, he had finally announced he would decline. It was probably a strategy to legally have freer hands.
He is also being sued by some shareholders, who accuse him of concealing his action by failing to declare his initial investments in Twitter in order to acquire more shares at a preferential price.
An overt political takeover attempt
This takeover attempt is, for Mr. Musk, overtly political. He enjoys, in his operation, the support of much of the Republican political class, very displeased with the closure of Donald Trump’s account on the social network after the attack on the Capitol, January 6, 2021. The star host of Fox News Tucker Carlson, described this on April 13 mr. Musk as “our last hope”†
Elon Musk, who is hired as a libertarian, has for years claimed a very elaborate conception of free speech, and believes that any form of “censorship” is dangerous. American conservatives, who see social media as “prejudiced” proponent of progressive ideas, appreciate this principled position – Mr. Musk, however, does not hesitate to use various questionable means to shut up his opponents†
In fiscal 2021, the company’s revenue was $5 billion, up 37% from 2020. But the company continues to lose money: 221 million in 2021. Twitter currently has 217 million daily active users and aims to grow that number. increase to 315 million by early 2024.
