Source: Observer Network
"I made a price..."
Musk tweeted screenshots
On April 14, a tweet by Tesla CEO Musk quickly sparked a hot discussion.
As can be seen from the link posted by Musk's tweet, Twitter's filing with the U.S. Securities and Exchange Commission (SEC) on April 13 said that Musk submitted a privatization proposal to Twitter on the same day, planning to buy 100% of Twitter's shares at a cash bid of $54.2 per share, a total price of about $41 billion. However, the document added that the proposal was not binding.
The offer represents a 54% premium to Twitter's closing price on Jan. 28 (the previous trade musk started buying Twitter stock on a massive scale) and 38% higher than the closing price on April 1, the previous trade on which Musk publicly bought Twitter's stock.
In an open letter to the chairman of Twitter's board, Musk wrote: "I invested in Twitter because I believe it has the potential to become a platform for free speech around the world, and I believe that free speech is a social responsibility for a functioning democracy." But I now find that the company is neither going to flourish nor serve this social need in its current form. Twitter needed to transform into a private company. ”
Musk also said he wouldn't play the "back-and-forth game," that there was no turning back, and that his offer was the "best and final" offer. If the offer is not accepted, he will reconsider his status as a shareholder.
Screenshot of Musk's open letter
As a Twitter user with more than 80 million followers, Musk often bluntly criticizes Twitter for "trampling on freedom of speech." After the outbreak of the Russian-Ukrainian conflict, Musk tweeted on March 5 that he would not "ban Russian media" through Starlink, saying that he "supports freedom of speech."
On March 25, Musk sent several tweets suggesting that he was seriously considering creating a social media platform because he believed that Twitter had failed to adhere to the "principle of free speech." He posted and asked, "Do you think Twitter strictly adheres to this principle?" About 70 percent of the more than 2 million participants voted that Twitter didn't do it.
Musk criticized Twitter for "trampling on free speech," suggesting the creation of other social platforms to take its place
On April 4, documents from the U.S. Securities and Exchange Commission (SEC) showed that Musk had acquired about 9 percent of Twitter's shares, becoming its largest shareholder. According to US media reports on the 5th, Twitter CEO and Twitter board said that tesla Musk will be appointed as a director of the company, but the proposal was rejected by Musk.
Reuters quoted a source as saying Twitter would review Musk's offer at the suggestion of Goldman Sachs and Wilson Sandini Gudrich &; Rosati Law Firm.
According to Bloomberg, Musk has the ability to acquire, and his current net worth is about $260 billion, while Twitter's market capitalization is about $37 billion. Currently, Musk has hired Morgan Stanley as its acquisition advisor.
But Adam Crisafulli, founder of market intelligence firm Vital Knowledge, said in a note that the $54.20 a share offer was "too low" for Twitter shareholders or the board to accept.