What would you do if a tech juggernaut denies you a seat on its board of members? You attempt to take over the entire company. Well, that’s what Tesla CEO Elon Musk did after he was denied a seat on the board of members with his 9.2% stake. According to a 13D file with the SEC, Elon Musk has quoted pricing of $54.20 per share in cash for 100% of the company valuing the company at $43 billion whereas its market valuation at the time of the offer is $37 billion.
According to the documents, Elon has filed a proposal to “acquire all the outstanding Common Stock of the Issue not owned by the Reporting Person for all cash consideration valuing the Common Stock at $54.20” as filed on April 13th. Elon stated that he invested in the social media giant for its potential as a platform for free speech as it is imperative for democracy. He further added that he will unlock the extraordinary potential that Twitter has to offer.
Elon further added that he might have to reconsider his position at the company as a shareholder should the offer be accepted. For this, Twitter issues a press release that the current board of directors at the company is reviewing the proposal and will take appropriate actions keeping the company’s best interest in mind.
Twitter’s board of directors has asked for a meeting at 10 AM ET to discuss the proposal and the actions henceforth.
Talking about the share prices, Twitter shares are up by 13% with the news while Tesla shares dipped by 1.5% fearing that Elon Musk won’t get distracted from Tesla, SpaceX, Neuralink, and Boring Company after acquiring Twitter.
According to the reports, Twitter could see a lot of the workforce leaving abruptly if the board accepts the offer. Also, Twitter is a social media platform not confined to U.S. lands which raises how Musk will run a company so diverse and with a footfall across every country on the face of the Earth and not just the United States.
