Elon Musk has threatened to withdraw his shareholder position in Twitter if the board doesn’t accept his offer to acquire 100% of the microblogging site, as he plans to take it private.
Musk had purchased 9.2% of Twitter stake to become the largest shareholder in the company in March, but the acquisition was made public in April, opening the door for the billionaire to join the board.
He had been given a condition that would see him unable to acquire the firm completely if he joins the board, leading to the Tesla chairman rejecting the board seat – this decision has now birthed other events.
On Thursday, Musk’s letter to the U.S securities was circulated, which states that he is interested in taking Twitter private by offering to buy the public firm’s stock for $54.20 per share, 18.2% above the current market value of $45.85.
The billionaire told Twitter chairman, Bret Taylor, in the letter, that he invested in Twitter because of its crucial role in democracy, and he’s eager to unlock the potential of the social media platform.
“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.” the letter reads.
Dangling his stake before the chairman, Musk threatened that he would reconsider his investment in the firm if his buyout offer is rejected, “My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder.”
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