IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

Elon Musk offers to buy Twitter for $41.39 billion, claiming only he can 'unlock its true potential'

If the deal doesn’t work, Musk has hinted that he will reconsider his position as a shareholder in the social media company

Elon Musk has offered to buy Twitter for $41.39 billion, just days after becoming the company's biggest shareholder.

The billionaire proposed yesterday to acquire all of the social media company’s outstanding common stock for the price of $54.20 a share, according to a Securities and Exchange Commission (SEC) filing.

Musk said that this represents a 54% premium over the closing price of the common stock on 28 January, 2022, and a 38% premium over the closing price on 1 April, 2022, the day before his investment into Twitter was publicly announced.

If the transaction is completed, Twitter would be de-listed from the New York Stock Exchange and become a private company.

“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,” Musk stated in the filing. “However, since making my investment I now realise the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.”

Musk said this is his best and final offer, and if it isn’t accepted he would need to reconsider his position as a shareholder in the company.

“Twitter has extraordinary potential. I will unlock it,” said the billionaire.

In a script from Musk added to the filing, it revealed that he believes the company needs to be private to go through the changes that he believes need to be made. After spending the past few days thinking this over, he decided to try acquire the company and take it private.

Musk refuses to play a back-and-forth game and claims to have moved straight to the end of the deal. “It’s a high price and your shareholders will love it,” he added.

If the deal doesn’t work, given that he doesn’t have confidence in management or believes he can drive the necessary change in the public market, he would have to reconsider his position as shareholder.

"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," said a spokesperson from the company.

The Tesla CEO revealed on 4 April that he had acquired a 9.2% stake in Twitter, which has caused one shareholder to sue the billionaire, according to The Guardian. Federal trade laws require investors to notify the SEC after surpassing a 5% stake in a company within 10 days.

However, Musk acquired his shares on 14 March but didn’t make this information public until 4 April. During that time, the lawsuit alleges he was able to buy additional shares at a deflated price.

The lawsuit seeks class action status on behalf of investors who sold their stock during the period and lost out on gains they would have made if Musk had disclosed his stake earlier.

Featured Resources

Accelerating AI modernisation with data infrastructure

Generate business value from your AI initiatives

Free Download

Recommendations for managing AI risks

Integrate your external AI tool findings into your broader security programs

Free Download

Modernise your legacy databases in the cloud

An introduction to cloud databases

Free Download

Powering through to innovation

IT agility drive digital transformation

Free Download

Recommended

Jack Dorsey admits regret for helping to centralise the internet
Network & Internet

Jack Dorsey admits regret for helping to centralise the internet

4 Apr 2022
IT Pro News In Review: Cyber attack at Ikea, Meta ordered to sell Giphy, new Twitter CEO
cyber security

IT Pro News In Review: Cyber attack at Ikea, Meta ordered to sell Giphy, new Twitter CEO

3 Dec 2021
Jack Dorsey resigns as Twitter CEO
business management

Jack Dorsey resigns as Twitter CEO

29 Nov 2021
Tesla shares fall after Musk Twitter poll
business management

Tesla shares fall after Musk Twitter poll

8 Nov 2021

Most Popular

FCC commissioner urges Apple and Google to remove TikTok from app stores
data protection

FCC commissioner urges Apple and Google to remove TikTok from app stores

29 Jun 2022
Former Uber security chief to face fraud charges over hack coverup
data breaches

Former Uber security chief to face fraud charges over hack coverup

29 Jun 2022
Internet providers look to ease cost of living crisis with cheaper broadband
broadband

Internet providers look to ease cost of living crisis with cheaper broadband

29 Jun 2022