Barely a fortnight since Tesla Motors CEO Elon Musk disclosed his plans of acquiring more shares on Twitter, the world’s richest man is now seeking to outrightly buy the company.
On Thursday, April 14, the multi-billionaire offered to purchase all Twitter shares at $54.20 per share.
He has proposed to purchase them for $41.4 billion (about Sh 4.7 trillion), according to the Securities and Exchange Commission as seen by CNN Business.Musk’s latest move leaves the leadership of Twitter at a crossroads, forced to make a decision of whether to allow or not to allow Musk to have his way.
This might be influenced by Musk’s decision to decline a seat at the Twitter board last weekend and thereafter saying that the micro-blogging app was dying.He also said Twitter should consider ditching the “w” from its name — or pursue other avenues, including potentially seeking alternate buyers.
A Business expert, who spoke to CNN Business says Twitter has three options: forget Musk and his offer, cut a deal with him or find another buyer.”The board has three options: One, they can go it alone, say, ‘Get lost, we’re good. Two is they can engage with Musk, either at this price or at another price. Three is they can find someone they like better,'” said Donna Hitscherich, a senior lecturer at Columbia Business School told CNN Business.
The billionaire’s interest in acquiring Twitter leaves the company in a disruption and panic mode occasioned by the uncertainty of what is to come in the days ahead.
CNBC also reported that Twitter’s board is said to have convened a meeting on Thursday mid-morning to discuss the offer as the company held an all-hands meeting with staff in the afternoon to discuss Musk’s takeover bid.
“It’s important that we all come together today as #OneTeam. Please join me at 2:05 pm for an all-hands. We will discuss today’s news and what’s next.” an internal message from Twitter CEO Parag Agarwal to staff read.However, Twitter has not commented on the timing of the board meeting and reports of an all-hands meeting.
The Tesla CEO sent an offer letter to the company on Wednesday night.
“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy,” he said in the letter to Twitter.
However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company,” he added.
The letter was addressed to Bret Taylor, the chair of the Twitter board, not CEO Parag Agrawal, who assumed that title recently.”Twitter has extraordinary potential. I will unlock it,” he concludes
Twitter issued a statement Thursday confirming that it had received the offer.
The company said its board would carefully review the proposal “to determine the course of action that it believes is in the best interest of the company and all Twitter stockholders.”
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