At a Glance:
- Elon Musk has offered Twitter a $41 billion cash deal to buy out the social media company.
- Twitter will be reviewing Elon Musk’s offer with advice from Goldman Sachs & Co and Wilson Sonsini Goodrich & Rosati.
- The user addition has been lower than expected for Twitter raising the doubts about growth prospects.
Tesla CEO, Elon Musk has offered Twitter a $41 billion cash deal to buy out the social media company. Elon has criticized the social media channel and by going private the company would see effective changes.
Elon Musk holds a 9% stake in the company and recently it was made public. The CEO however rejected the offer to be on Twitter’s board. The company has limited Elon’s stake to just 15%.
Elon Musk penned a letter to Twitter
Elon has always been critical of the Twitter platform for its policies. He is a free-speech absolutist and recently ran a poll questioning the free speech on the platform.
He wrote a letter to the Chairman of Twitter, Bret Taylor which read, “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 into a private company. 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 to consider Elon’s offer
Twitter will be reviewing Elon Musk’s offer with advice from Goldman Sachs & Co and Wilson Sonsini Goodrich & Rosati. The shares of Twitter jumped by 12% in premarket trading while Tesla faced a fall of 1%.
Elon Musk’s followers have grown to 80 million since he joined the site in 2009. He has frequently used the platform for making several announcements.
On the other hand, the user addition has been lower than expected for Twitter raising the doubts about growth prospects. Musk is confident that his involvement will unlock the extraordinary potential of the platform.
