After owning 9.2 per cent of Twitter shares recently, world’s richest man Elon Musk has effectively launched a hostile takeover of the micro blogging site with an offer to buy the rest of it.
As reported by Bloomberg, Musk has made a “best and final” offer to buy Twitter Inc, saying the company has extraordinary potential and he will unlock it. The world’s richest man will pay $54.20 per share in cash, representing a 54% premium over the Jan 28 closing price and a value of about $43 billion.
Musk, 50, announced the offer in a filing with the U.S. Securities and Exchange Commission on Thursday. Following the announcement, the social media company’s shares soared 18%.
Earlier on Monday, Twitter CEO Parag Agrawal had announced that Tesla and SpaceX CEO Elon Musk will not join the board of the company, saying that "he believes it is for the best".
Joining the board of Twitter would have prevented Musk from owning more than 14.9 per cent of the company.
Also, the way Musk tweets freely on controversial subjects could put Twitter in a catch-22 situation in the near future as to whether to act on his tweets or not.