Elon Musk has launched a hostile $ 43 billion takeover bid on Twitter, a social network that the eccentric billionaire behind Tesla uses as a hobby to connect with his 81 million followers – saying he believes the platform is essential to the operation of democracy.
At a TED conference on Thursday, Musk outlined his plan to make Twitter private, saying he saw the platform as a way to encourage conversation and potentially even prevent international conflict. But he acknowledged that if he took over the property, he would be blamed for problems, and even before that, his offer could fail.
“My strong intuitive feeling is that having a public platform that is as trusted and inclusive as possible is extremely important for the future of civilization,” he said. “I’m not interested in economics at all.”
Wednesday’s $ 54.20 private equity bid marks a major escalation in Musk’s week-long battle to gain influence in social media company after he acquired more than a 9 percent stake and flirts with space. on the board. In the documentation, he called it “the best and final offer.” If it is not accepted, he added: “I will have to reconsider my position as a shareholder.”
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Twitter confirmed in a news release Thursday that it had received an “unsolicited, non-binding offer” from Musk. “Twitter’s board of directors will carefully review the proposal to determine the course of action it believes is in the best interests of the company and all Twitter shareholders.
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Musk, who is the CEO of electric car company Tesla and its space company SpaceX, is known for some bold business statements, some of which are not reflected. Musk wrote on Twitter that he had “secured funding” to make Tesla private in 2018 at a price of $ 420 per share, but was fined by the Securities and Exchange Commission when the deal failed. He also often announces products like Cybertruck on a faster schedule than possible.
The takeover bid – $ 54.20 a share – may be a veiled reference to the previous episode that put Musk in trouble with securities regulators.
While Musk is the world’s richest man, valued at $ 259 billion, according to the Bloomberg Billionaires Index, some analysts doubted he had enough liquid assets to buy Twitter. Much of his wealth is tied to his companies. At the TED conference on Thursday, Musk assured the audience that he was doing it.
“Technically, I could afford it,” he said, adding, “I think it’s going to be a little painful and I’m not sure I can actually get it.”
Musk landed billions of shares in Tesla late last year and began buying shares on Twitter in late January, according to financial documents. Musk said he intends to sell a 10 percent stake in the electric car company, the most valuable carmaker. Tesla’s estimate of more than $ 1 trillion exceeds that of the social media network he wants to buy, about $ 34 billion.
Musk plans to allow the maximum number of shareholders to remain in the private company, he said.
Some shareholders tweeted that they did not approve the plan. Saudi billionaire Prince Alwaleed bin Talal tweeted on Thursday that he had rejected the offer, saying he did not think it was “close to the company’s inherent value”.
Meanwhile, some investors and analysts covering his two main endeavors are concerned that Musk’s takeover could be a departure from his ambitions to revolutionize the automotive and aerospace industries.
In a letter to Twitter chairman Brett Taylor, Musk said he believed the company had “the potential to be a platform for free speech around the world.”
Freedom of speech is a “public imperative for a functioning democracy,” he added. But after his investment, he realized that the company would neither thrive nor serve this social imperative in its current form. Twitter needs to be transformed as a private company. “
The SEC’s letter also included what appeared to be text and voice messages related to the discussion. In a voice message that appears to be from Musk, Tesla’s CEO said, “I’m not playing the game back and forth… I’ve moved straight to the end,” adding to his proposal that “It’s a high price and your shareholders will do it.” they like it. “
He said he would have to reconsider his position on Twitter if his deal was not accepted.
“It’s not a threat, it’s just not a good investment without the changes that need to be made,” he said, according to the document.
On April 5, Twitter surprised employees and investors by announcing that Musk would join his board of directors. Days later, however, Twitter CEO Parag Agraval announced that Musk had resigned.
“There will be distractions ahead, but our goals and priorities remain unchanged,” Agraval wrote. “The decisions we make and how we implement remain unchanged. The decisions we make and how we implement them are in our hands, not anyone else’s. Let’s muffle the noise and stay focused on the work and what we’re building. “
Tesla CEO Elon Musk will not join the Twitter board, however
Joining the board would handcuff him from the company’s full acquisition, CFRA capital researcher Angelo Zino said in an email to The Post.
Board membership will also give Musk certain fiduciary responsibilities, such as requiring him to act in the best interests of the company.
Over the weekend, Musk unloaded a series of sharply prickly tweets at the company. Is Twitter dying? He asked early Saturday morning. He continued to question the most popular Twitter users, its San Francisco headquarters and the account verification process. Before he finished, he joked about changing the company’s name.
Musk’s takeover bid was met with mixed reactions on Thursday.
Some right-wing politicians have welcomed Musk’s takeover bid, sparking a wider backlash against the social media platform after it permanently banned former President Donald Trump in early 2021.
Representative Lauren Beabert (R-Col.) Said Musk deserved a medal for his “patriotic and necessary” fight for freedom of speech. Nigel Farage, a British television cameraman and former politician who led the Brexit movement, called the Musk takeover proposal the best news for free speech in years.
“The panic coming from the media with blue checks after Elon Musk’s offer to buy Twitter is the fear of losing the ability to censor conservatives online and silence the free speech they don’t like,” tweeted spokesman Darrell Isa (California).
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Others seemed concerned that Musk might gain too much control over a platform that many see as essential to free speech. New York-based venture capitalist Fred Wilson said the platform was “too important” to be owned and controlled by one person.
“The opposite has to happen,” Wilson tweeted. “Twitter needs to be decentralized as a protocol that feeds an ecosystem of communication products and services.
At a TED conference on Thursday, Musk attacked the Securities and Exchange Commission, a common enemy after his dispute with the regulatory agency in 2018 over a $ 20 million tweet and chairman of the board of Tesla.
“I was forced to illegally confess these bastards to the SEC,” he said, echoing an argument he made in a recent letter to a federal judge.
Reed Albergotti contributed to this report.
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