Today, Elon Musk, the world’s richest man, in a tweet disclosed a Securities and Exchange Commission filing to amend the original purchase of 9.1% (or 73,115,038 shares) of Twitter stock to now include 100% of stock (over 800 million shares) in the company. This is nothing less than a classic hostile takeover of Twitter by Musk.
I made an offer https://t.co/VvreuPMeLu
— Elon Musk (@elonmusk) April 14, 2022
Below is a statement in the SEC filing amendment to Bret Taylor, Chair of Twitter Board of Directors, from Musk:
“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy.
“However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.
“As a result, I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before I began investing in Twitter and a 38% premium over the day before my investment was publicly announced. My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder.
“Twitter has extraordinary potential. I will unlock it.”
Twitter Investor Relations has confirmed receipt of “an unsolicited, non-binding proposal from Elon Musk to acquire all of the Company’s outstanding common stock for $54.20 per share in cash.”
“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,” Twitter released today in response to Musk’s $43 billion proposal.
Our press release this morning:https://t.co/XoC4UXrZ6P
— Twitter Investor Relations (@TwitterIR) April 14, 2022
On April 10, Twitter CEO Parag Agrawal announced that Musk, after buying 9.1% of the company on April 4, decided not to join the Twitter Board of Directors.
“Elon’s appointment to the board was to become officially effective 4/9, but Elon shared that same morning that he will no longer be joining the board. I believe this is for the best.”
Agrawal then warned of “distractions ahead” in the same announcement.
Elon has decided not to join our board. I sent a brief note to the company, sharing with you all here. pic.twitter.com/lfrXACavvk
— Parag Agrawal (@paraga) April 11, 2022
Prior to his April 4 purchase of 9.1% of Twitter and becoming its largest shareholder, Musk conducted a Twitter poll on March 25 asking, if users believe Twitter adheres to free speech principles of which 70.4% of over 2 million respondents replied with a no.
“The consequences of this poll will be important. Please vote carefully,” musk added.
Free speech is essential to a functioning democracy.
Do you believe Twitter rigorously adheres to this principle?
— Elon Musk (@elonmusk) March 25, 2022