Elon Musk launches bid to buy Twitter

Elon Musk launches bid to buy Twitter

Elon Musk

SpaceX founder, Tesla CEO and the world’s richest person, Elon Musk, has offered to buy up all of Twitter on Thursday when he made a bid to buy up the entire company for more than $43 billion US.

In a regulatory filing, Twitter revealed that Musk has offered to buy up all outstanding shares in the company for $54.20 USD a share. With 800 million shares available, that values the company at just over $43 billion US.

Musk said his motivations are not financial but rather come from a desire to preserve the “public square” that Twitter has become.

“This is just my strong, intuitive sense … that having a public platform that is maximally trusted and broadly inclusive is extremely important to the future of civilization,” Musk, speaking at a TED conference in Vancouver.

The move is the latest development in the month-long saga between Musk and Twitter, after news broke in early April that he had cautiously bought up more than 73 million shares in the company.  More shares than any other single person or entity owns.

Elon Musk

That purchase of share led Musk to be invited to join the company’s board of directors, but fell apart days later.

If successful, Musk confirmed that he would want to implement the long-discussed edit button that would allow users to alter a tweet after it was posted. The edit functionality would be available only for a “short period of time,” Musk said, and editing would “zero out all retweets and favourites.” He also vowed to eliminate the “spam and scam bots” on the platform.

Twitter’s board of directors has acknowledged Musk’s offer, and is meeting Thursday to discuss whether to accept it or recommend that shareholders reject it, U.S. financial channel CNBC reported.

 

 

Elon Musk issued his most direct threat yet to walk away from his purchase of Twitter(TWTR) on Monday, openly accusing the social media company of breaching the merger agreement by not providing the data he has requested on spam and fake accounts.

In a letter to Twitter’s head of legal, policy and trust, Vijaya Gadde, Musk alleged that Twitter is “actively resisting and thwarting his information rights” as outlined by the deal.
Shares of Twitter fell 5% in early trading Monday. Even before the latest development, Twitter stock was trading well below Musk’s takeover offer of $54.20 per share, likely indicating investor skepticism about the deal going through.
Elon Musk
Twitter’s CEO, Parag Agrawal, has stood by his company’s longtime spam metric. In a statement Monday, the company said: “Twitter has and will continue to cooperatively share information with Mr. Musk to consummate the transaction in accordance with the terms of the merger agreement.”
The company also said it intends to “close the transaction and enforce the merger agreement at the agreed price and terms.”
Musk has alleged that the true number of spam accounts is likely much more, potentially as high as 90%. Musk has previously said the acquisition “cannot move forward” until the company provides “proof” of its spam metric.

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