If the acquisition should be successful
Musk wants to take Twitter private
On the one hand, Tesla boss Musk sees potential in Twitter, on the other hand, in his opinion, the network restricts freedom of expression. He still doesn’t know if his plan to buy it will work. In any case, Twitter would disappear from the market if it were taken over.
Hi-tech pioneer Elon Musk wants to take over Twitter entirely after becoming a major shareholder. The founder of the electric car manufacturer Tesla and the richest person in the world wants to buy all the remaining shares of Twitter at a price of 54.20 dollars (49.69 euros) and then take the online platform out of the stock market. Twitter is thus valued at about 43,000 million dollars. Musk’s attempt at a hostile takeover of Twitter caused a tremendous stir.
However, the star entrepreneur admitted just hours after announcing his plans for the Twitter takeover that he was “not sure” it would succeed. However, should his offer fail, he has a “plan B,” the 50-year-old billionaire said at the “Ted2022” conference in Vancouver, western Canada. He did not comment further on this “Plan B”.
Earlier last week, news broke that Musk had acquired about 9 percent of Twitter’s shares, making him the largest shareholder in the online service. Shortly after, Twitter announced that Musk would join the board of directors. The South African businessman then backed down.
“Twitter has extraordinary potential”
In a mandatory announcement to the US stock market on Wednesday, Musk wrote that he originally decided to join Twitter because he believed in the company’s potential to be “a platform for freedom of expression around the world.” However, since he became involved with Twitter, he has come to the conclusion that “the company in its current form is neither evolving nor doing justice to its role in society.”
“Twitter has extraordinary potential,” Musk wrote. “I’ll let him go.” The businessman added later at the conference in Vancouver that his Twitter acquisition plan was not about “making money.”
Musk is offering Twitter shareholders $54.20 per share, a 54 percent premium over the closing price on January 28, the day before he joined Twitter. “This offer is my best and last offer,” said Musk, who also founded the space company SpaceX. If it is not accepted, he would have to “reconsider his position as a shareholder.”
Musk asked his followers if Twitter is “dying”
Twitter said it would carefully review the unsolicited, non-binding offer. The board of directors will then decide how to proceed “in the best interest of the company and the shareholders.” Musk, himself an avid user of the online service with 81.6 million followers, has long been known as a critic of Twitter. According to Forbes magazine, the world’s richest person with assets currently totaling $267 billion has repeatedly accused the platform of restricting freedom of expression.
More recently, Musk, known for his taunts, caused a stir when he asked his followers if Twitter was “dying.” He pointed out that many celebrities with millions of followers, like singer Justin Bieber, rarely speak on the platform.
After becoming a majority shareholder, Musk also proposed changes. So he started a poll on his profile asking if Twitter users wanted a feature to correct a tweet after it was posted. After a majority voted in favor, the company said it would test this feature, but stressed that it had been working on such a possibility for a long time and Musk did not come up with this idea.