Elon Musk would acquire 90.8% of Twitter, paying $54.20 in cash per share. Twitter is being cautious about Elon Musk’s proposal.
Elon Musk, the CEO of Tesla and SpaceX, made public his mistrust of Twitter’s directive and revealed a millionaire offer to acquire the company that created the social network. The tycoon offered at least USD 43 billion for the company, with which he plans to control and change it.
The news appeared on social media and quickly became a viral phenomenon. The information got shared by Musk on his Twitter account in a link to a prospectus from the United States Securities and Exchange Commission (SEC).
Elon Musk expressed that if his proposal does not receive consideration, he will have to reconsider his position as the company’s largest shareholder (9.2%), which he has held since April 4. According to him, it is his “last and best offer” to take over the company that Jack Dorsey left behind.
Musk is offering to acquire 90.8% of the Twitter stock for $54.20 in cash per share. This sum is a 54% premium before he started investing in the company and a 38% premium over the day before the public announcement of investment.
Given this situation, there are various reasons why Elon Musk would want to acquire Twitter
According to Musk, Twitter, funded in 2006, can enrich freedom of speech and expression on its platform. For him, it is a social imperative that every democratic system needs.
But since investing in and becoming the company’s largest shareholder, he highlighted that the company meets this social imperative the way it currently goes through.
Twitter is under the direction of Parag Agrawal, the current CEO. He got assigned to the position after the departure of Jack Dorsey last March, who got dedicated to his other company, called Block.
Agrawal said in an interview in 2018 that Twitter needed to focus less on freedom of expression and more on how times have changed, where the role of the company and social media is to determine who can get heard on the platform.
Musk points out that for Twitter to achieve its goal of honoring freedom of expression and becoming a platform fit for that purpose, it must first go through significant changes. But he distrusts the management to be able to make them happen.
In a statement sent to Twitter representative Bret Taylor, Musk expressed that if his offer doesn’t receive focus, he will have to reconsider his position as a shareholder in the company. This position occurs because he does not believe that the current managers have what it takes to encourage the significant changes that a company like Twitter deserves.
Thus, the businessman, who had access to the company’s executive board, shows discrepancies that, from his point of view, must get completely corrected through absolute control of the company focused on social networks.
Justin Sun, the creator of TRON, publicly supported the changes that Elon Musk proposed for Twitter. He said he fully supports Elon Musk’s reform efforts and would love to see Twitter go crypto-native and Web3 compliant.
By: Jenson Nuñez
