Tesla boss Elon Musk has offered to buy Twitter, saying he is the right person to “unlock” the social media platform’s “extraordinary potential”.
In a surprise announcement, Mr Musk said he would pay $54.20 a share for Twitter, valuing it at about $40bn.
It recently emerged that Mr
Rumours have been swirling for weeks that Elon Musk was considering starting his own social network, but with the news he’d increased his stake in Twitter to 9.2% (making him the company’s single largest shareholder) it seemed like he was scratching the ownership of a social media company itch by further buying into one rather than building his own. Donald Trump’s Truth Social platform’s struggle for relevance and technical woes has proven that building a social network is perhaps harder than the former President and many others thought.
While some were shocked Elon Musk rejected a position on Twitter’s board, seasoned Musk watchers commented that a seat on the company’s board would come with rules and conditions that might not be a good match for the world’s richest man’s fondness for speaking his mind on the platform.
Mr Musk has recently made several statements about free speech and his belief that Twitter acts as global townhall, as well as suggesting the company’s headquarters could be turned into a homeless shelter. That rejection of a seat in the board also provided Mr Musk with the freedom to mount this takeover bid, as the deal in place would’ve limited him to owning 15% of the company, clearly, he had other plans.
There’s been considerable disquiet among staff at Twitter over the whole affair, with some employees taking to the platform to vent their frustration and concerns about controversial statements Mr Musk has made in the past. If Elon Musk’s takeover materialises, we’ll be likely to find out how he intends the run the company courtesy of one his many tweets.
Twitter had offered Mr Musk a seat on its board after it emerged that he held a 9.2% stake in the company.
The role was set to become effective last weekend but then Mr Elon Musk decided against taking it.
On Monday, Twitter’s chief executive Parag Agrawal had tweeted that he thought the decision by Mr Musk not take a seat on the board was “for the best”.
He added: “We have and will always value input from our shareholders whether they are on our board or not. Elon is our biggest shareholder and we will remain open to his input.”
Though he also warned staff: “There will be distractions ahead.”
After that announcement, Mr
Rumours have been swirling for weeks that Elon Musk was considering starting his own social network, but with the news he’d increased his stake in Twitter to 9.2% (making him the company’s single largest shareholder) it seemed like he was scratching the ownership of a social media company itch by further buying into one rather than building his own. Donald Trump’s Truth Social platform’s struggle for relevance and technical woes has proven that building a social network is perhaps harder than the former President and many others thought.
While some were shocked Elon Musk rejected a position on Twitter’s board, seasoned Musk watchers commented that a seat on the company’s board would come with rules and conditions that might not be a good match for the world’s richest man’s fondness for speaking his mind on the platform.
Mr Musk has recently made several statements about free speech and his belief that Twitter acts as global townhall, as well as suggesting the company’s headquarters could be turned into a homeless shelter. That rejection of a seat in the board also provided Mr Musk with the freedom to mount this takeover bid, as the deal in place would’ve limited him to owning 15% of the company, clearly, he had other plans.
There’s been considerable disquiet among staff at Twitter over the whole affair, with some employees taking to the platform to vent their frustration and concerns about controversial statements Mr Musk has made in the past. If Elon Musk’s takeover materialises, we’ll be likely to find out how he intends the run the company courtesy of one his many tweets.
Twitter had offered Mr Musk a seat on its board after it emerged that he held a 9.2% stake in the company.
The role was set to become effective last weekend but then Mr Musk decided against taking it.
On Monday, Twitter’s chief executive Parag Agrawal had tweeted that he thought the decision by Mr Musk not take a seat on the board was “for the best”.
He added: “We have and will always value input from our shareholders whether they are on our board or not. Elon is our biggest shareholder and we will remain open to his input.”
Though he also warned staff: “There will be distractions ahead.”
After that announcement, Mr Musk posted a cryptic tweet of smiling emoji with its hand over its mouth.
posted a cryptic tweet of smiling emoji with its hand over its mouth.
was Twitter’s biggest shareholder after he built up a large stake in the firm.
He said that if his offer was not accepted: “I would need to reconsider my position as a shareholder”.
A filing with the US financial regulator appeared to show text and/or voice messages from Mr Musk to Twitter’s board, showing that he had raised the idea at the weekend that the business should go private.
Mr Elon Musk had been invited to join the board, but Twitter announced on Sunday he had decided against it.
In the messages published in the filing, Mr Elon Musk said he was not “playing the back-and-forth game” and said of his offer: “It’s a high price and your shareholders will love it.”
He said he would have to sell his shares if the deal did not go through.
“This is not a threat, it’s simply not a good investment without the changes that need to be made,” he added.
In his filing with the US regulator, Mr Musk said he had invested in Twitter because “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.”
He added: “Twitter has extraordinary potential. I will unlock it.”
Rumours have been swirling for weeks that Elon Musk was considering starting his own social network, but with the news, he’d increased his stake in Twitter to 9.2% (making him the company’s single largest shareholder) it seemed like he was scratching the ownership of a social media company itch by further buying into one rather than building his own. Donald Trump’s Truth Social platform’s struggle for relevance and technical woes has proven that building a social network is perhaps harder than the former President and many others thought.
While some were shocked Elon Musk rejected a position on Twitter’s board, seasoned Musk watchers commented that a seat on the company’s board would come with rules and conditions that might not be a good match for the world’s richest man’s fondness for speaking his mind on the platform.
Mr Musk has recently made several statements about free speech and his belief that Twitter acts as a global town hall, as well as suggesting the company’s headquarters could be turned into a homeless shelter. That rejection of a seat on the board also provided Mr Musk with the freedom to mount this takeover bid, as the deal in place would’ve limited him to owning 15% of the company, clearly, he had other plans.
There’s been considerable disquiet among staff at Twitter over the whole affair, with some employees taking to the platform to vent their frustration and concerns about controversial statements Mr Musk has made in the past. If Elon Musk’s takeover materialises, we’ll be likely to find out how he intends the run the company courtesy of one of his many tweets.
Twitter had offered Mr Musk a seat on its board after it emerged that he held a 9.2% stake in the company.
The role was set to become effective last weekend but then Mr Musk decided against taking it.
On Monday, Twitter’s chief executive Parag Agrawal had tweeted that he thought the decision by Mr Musk not take a seat on the board was “for the best”.
He added: “We have and will always value input from our shareholders whether they are on our board or not. Elon is our biggest shareholder and we will remain open to his input.”
Though he also warned staff: “There will be distractions ahead.”
After that announcement, Mr Musk posted a cryptic tweet of smiling emoji with its hand over its mouth.
