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HomeMisc NewsTech NewsTech billionaire Elon Musk offers $41.4 bln for Twitter takeover

Tech billionaire Elon Musk offers $41.4 bln for Twitter takeover

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The tech billionaire Elon Musk has offered to buy Twitter for $41.4 billion few weeks after he acquired 9 per cent stake in the company.

A regulatory filing showed on Thursday that Musk was offering $54.20 a share – a 38% premium to the closing price of Twitter’s stock on 1 April, the last trading day before the Tesla chief executive’s investment of more than 9 per cent in the company was publicly announced.

Musk said the company has extraordinary potential and he is the person to unlock it.

Musk, 50, announced the offer in a filing with the U.S. Securities and Exchange Commission on Thursday, after turning down a potential board seat at the company.

The billionaire, who also controls Tesla Inc., first disclosed a stake of about 9 per cent on April 4. Tesla shares fell about 1.5 per cent in pre-market trading on the news.

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Twitter said that its board would review the proposal and any response would be in the best interests of “all Twitter stockholders.”

The bid is the latest saga in Musk’s volatile relationship with Twitter. The executive is one of the platform’s most-watched firebrands, often tweeting out memes and taunts to @elonmusk’s more than 80 million followers. He has been outspoken about changes he’d like to consider imposing at the social media platform, and the company offered him a seat on the board following the announcement of his stake, which made him the largest individual shareholder.

After his stake became public, Musk immediately began appealing to fellow users about prospective moves, from turning Twitter’s San Francisco headquarters into a homeless shelter and adding an edit button for tweets to granting automatic verification marks to premium users. One tweet suggested Twitter might be dying, given that several celebrities with high numbers of followers rarely tweet.

Unsatisfied with the influence that comes with being Twitter’s largest investor, he has now launched a full takeover, one of the few individuals who can afford it outright. He’s currently worth about $260 billion according to the Bloomberg Billionaire’s Index, compared with Twitter’s market valuation of about $37 billion.

In a letter to Twitter’s board, Musk said he believes Twitter “will neither thrive nor serve [its free speech] societal imperative in its current form. Twitter needs to be transformed as a private company”

The takeover is unlikely to be a drawn-out process. “If the deal doesn’t work, given that I don’t have confidence in management nor do I believe I can drive the necessary change in the public market, I would need to reconsider my position as a shareholder,” said Musk.

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