Twitter shares rose more than 12% in premarket trading following Musk’s officially filed offer with the Securities and Exchange Commission.
CEO Elon Musk made the network explode on April 4 when he purchased 9.2 percent of Twitter shares. It is worth considering that they rose immediately after the revelation.
Later, it became known that he would not play a role on the board of directors, despite being the largest shareholder, and he was joking about the strong criticisms that currently rely on Twitter.
But something else was at hand and revealed by a document from the United States Securities and Exchange Commission, SEC. In said document, Elon Musk himself offers to acquire the social media company Twitter (TWTR) for at least $41.3 billion in cash.
The letter to the SEC, revealed by the institution, says that Elon decided to invest in Twitter
because he firmly believes in its potential to be the platform ideal for freedom of expression worldwide, and freedom of expression is a social imperative for solid democratic systems.
However, since investing, Elon noted that the company would not thrive and meet this social imperative in its current form. According to the Chairman, Twitter needs a transition and become a private company.
Elon is currently offering to purchase 100% of Twitter for $54.20 per share in cash, a 54% premium before he started investing in Twitter, and a 38% premium over the day before the public revelation of his investment.
Twitter has Extraordinary Potential
Jack Dorsey, the founder of Twitter, has not yet explicitly commented on this offer. Neither has the current CEO of the platform, Parag Agraval, but Twitter shares rose more than 12% in premarket trading following Musk’s announcement.
Due to Musk’s interest in digital assets, especially Dogecoin, the doggy meme cryptocurrency appeared in the news, rising 5.28% in the last 24 hours, according to CriptoMercados. Of the first 15 with more capitalization, it is the currency with the highest percentage of increase in the day. Also, Dogecoin rose when Musk said he would be a shareholder of Twitter, but then it did not hold.
Shortly after the news of Elon Musk’s offer, and the posting of his offer on Twitter, Tron CEO Justin Sun stated that he also wanted to acquire Twitter and made an even bigger offer, registered at $60 per share.
He said he wants to encourage more users to get engaged and start developing procedures to clean up fraud and bots. After these statements, Twitter shares soared 2.56% compared to yesterday. At 9:50 am in New York, they are at US$47.02.
By: Jenson Nuñez
