Elon Musk has offered to buy Twitter for $43 billion in cash, or $54.20 a share.
“I am not playing the back-and-forth game. I have moved straight to the end. It’s a high price and your shareholders will love it,” Musk is said to have told the social media giant, according to documents filed with the Securities and Exchange Commission on Thursday.
Twitter confirmed in a press release that it received an “unsolicited” offer from the SpaceX founder.
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“The Twitter Board of Directors will 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,” the company said.
Musk, whose fortune is estimated at about $260 billion, according to the Bloomberg Billionaire’s Index, said Twitter “needs to be transformed as a private company,” and vowed to “unlock” its “extraordinary potential” if the bid is successful.
“If the deal doesn’t work, given that I don’t have confidence in management nor do I believe I can drive the necessary change in the public market, I would need to reconsider my position as a shareholder,” he said in the filing.
Twitter shares closed at $45.85 in New York Stock Exchange trading on Wednesday. They rose sharply in pre-market trading Thursday on news of Musk’s bid before falling back.
The move comes after the Tesla CEO disclosed a stake of about 9 percent in Twitter last week. That disclosure is reportedly already at the center of a lawsuit filed this week by another Twitter shareholder who alleges Musk made “materially false and misleading statements and omissions by failing to disclose to investors” that he owned a stake in the company.
His delay in disclosing the stake, the lawsuit claims, led to “artificially deflated prices.”
With more than 80 million followers on the platform, Musk has sparked speculation in recent weeks with frequent tweets calling for drastic changes in the company and questioning whether it is really a “free speech” site. Earlier this week, he floated the idea of turning Twitter’s San Francisco headquarters into a homeless shelter, calling it a “great idea.”
Musk, who last week took to the platform to ask, “Is Twitter dying?” wrote in the filing that he believes it can “neither thrive nor serve” its purpose of promoting free speech if it remains as it is now.
He is said to have hired Morgan Stanley as an adviser for the takeover bid.
