Max E.Thu, Apr 14, 2022 6:10 PM
Musk Offers to Buy 100% of Twitter For $43 Billion
Tesla founder Elon Musk has filed an application with the U.S. Securities and Exchange Commission to buy 100% of Twitter shares at a price of $54.2 per share, Bloomberg reports. According to CNBC, Twitter issued 800.64 million shares, a deal worth more than $43 billion if approved. As part of the takeover, Musk hired investment bank Morgan Stanley as a financial advisor.
Twitter's capitalization is $36.71 billion. Amid the statement of the head of Tesla, Twitter shares rose by 11% in the premarket (New York Stock Exchange). At the time of writing, the stock is trading at around $51.
According to a report published on the SEC website, on March 14, Musk became the owner of about 73.48 million common shares of Twitter. This equates to a 9.2% stake in the company. The cost of the package based on the market price amounted to $2.89 billion. Elon Musk's net worth, according to Forbes Real Time, is $265.1 billion.
Twitter CEO Parag Agrawal said he believes it's for the best. Agrawal noted that the company values the contribution of its shareholders, whether they are members of the board of directors or not. The head of Twitter promised that the company would be open to proposals from the entrepreneur who owns the largest stake.
However, Justin Sun decided to outbid Musk's offer – today, the founder of Tron said he was ready to acquire Twitter at a price of $60 per share.