Elon Musk Offers to Buy Twitter for $42 Billion

Tesla CEO Elon Musk has made an offer to buy Twitter in an updated 13D filing. He is offering $54.20 per share in cash. The proposal was delivered in a letter to Twitter.

Tesla CEO is offering to acquire all of the outstanding common stock of the issuer not owned by the Reporting Person for all cash consideration valuing the Common Stock at $54.20 per share. He claims that Twitter needs to go private got through some important changes that need to be made. 

In his letter to Twitter Chairman Bret Taylor, Elon Musk said, “I invested in Twitter as I believe it to be the platform for free speech around the globe and I believe free speech is societal imperative for functioning democracy.”

According to Bloomberg, Elon Musk’s wealth is around $260 billion. Twitter’s market valuation is about $37 billion and Elon Musk has offered about $43 billion for the acquisition of the platform.

Twitter shares are up over 13% pre-market after the announcement. As a result, Tesla’s shares went down 1.5% on fears that Elon Musk, who already leads Tesla, SpaceX, The Boring Company and Neuralink, may get distracted with this acquisition.  

Last week Elon Musk revealed a 9.2% stake in Twitter, after which Twitter announced that he would be appointed to its board. However, Twitter CEO, Parag Agrawal later announced that Elon Musk would no longer be joining Twitter’s board of directors, after which Twitter saw a fall of 5% in the pre-market session.