On the evening of April 14, Tesla CEO Musk officially announced the acquisition of Twitter, and he proposed to buy Twitter for $54.20 per share. The price is a 54 percent premium to Twitter's closing price on Jan. 28, and the acquisition will be worth more than $43 billion, or about 274 billion yuan. Affected by this news, Twitter shares surged 18% at their pre-market high.
Subsequently, Twitter confirmed in a press release that it had received the above proposal from Musk on its own initiative. Twitter said the board would carefully review the proposal to come up with a course of action that is in the best interests of the company and all shareholders.
Musk said he had hired Morgan Stanley as financial advisor. He also said Twitter has extraordinary potential and that he will unleash that potential. If the offer is not accepted, the position as a shareholder will need to be reconsidered.
On April 12, Beijing time, Musk said in a filing with the U.S. Securities and Exchange Commission (SEC) that there are currently no "plans or intentions" to buy more shares, but reserves the right to "change his plans at any time" after evaluating various factors, including stock prices and "relatively attractive alternative business and investment opportunities."
According to the Bloomberg Billionaires Index, Musk is currently worth about $260 billion, while Twitter is worth about $37 billion, and it will not be difficult for Musk to fully acquire Twitter. (Source: Phoenix)