Tesla CEO Elon Musk has offered to buy Twitter however his offer hasn’t been met with open arms by the people at the social media platform.
The billionaire has offered up an additional AUD $58 billion to purchase Twitter after recently spending just over $3 billion to amass 9.2 per cent of shares and become the largest stake holder. In an interview at the TED 2022 conference, he told the audience that he “could technically afford it” and that he has “sufficient assets” to make it work.
On April 14 Musk Tweeted that he made an offer, providing a link to the official document.
“I am offering to by 100 per cent of Twitter for USD $54.20 per share in cash,” he said.
“My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder.”
He detailed further that “Twitter has extraordinary potential” and that he would “unlock it”. Musk cited the reason he invested in the social media platform because he “believes in its potential to be the platform for free speech around the globe” and he believes “free speech is a societal imperative for a functioning democracy”.
In response to Musk’s offer, Twitter has adopted a “poison pill”. This essentially means that current shareholders are able to buy stocks at a significantly lower price than usual in order to dilute the holdings of any new shareholders, aka Musk.
The “poison pill” was voted in favour by all stakeholders with Twitter saying in a statement they will be open to discussions with the Space X owner.
“The Rights Plan does not prevent the Board from engaging with parties of accepting an acquisition proposal if the Board believes that it is in the best interests of Twitter and its shareholders,” they said.
Although Musk is looking to buy the entirety of Twitter, he is no longer the biggest shareholder. Shortly after his 9.2 per cent purchase, Vanguard group bought 10.3 per cent of the company to become the leading owner.