Tesla CEO Elon Musk has offered to buy Twitter for $41.39bn, in a move to utilise the platform's potential for "free speech".
This move emerged only days after Musk rejected a seat on the social media giant's board, which would have stopped him from taking over the company.
I made an offer https://t.co/VvreuPMeLu
— Elon Musk (@elonmusk) April 14, 2022
The billionaire got straight to the point in his offer letter, claiming this was not a "threat" and the platform was "simply not a good investment without the changes that need to be made".
Twitter reported revenue of $1.56 billion in the final three months of 2021, a 22% increase from a year earlier but lower than analyst expectations. Twitter said it had earned $176 million in income, a 34% decline from the previous year.
Musk claims in the letter that Twitter has the potential to be the platform for free speech around the globe, an "imperative" for democracy. This comes soon after he polled his followers, asking whether the social media giant adheres to the principle.
This letter follows his move to become the largest shareholder in Twitter, which we covered earlier this week, predicting his consideration of an acquisition:
"Musk is a frequent critic of the platform, believing it to have focused on the wrong growth priorities. Is this move the beginning of plan to buy Twitter?"
Scott Galloway urges caution around the move:
Over the past several years, he’s been reckless, toying with companies, cryptocurrencies, and technologies that captured his fleeting attention only to move on when the next shiny object caught his gaze.
Musk has often shown interest in de-centralised concepts, such as crypto, using social media to influence followers and point attention towards projects. If accepted, will Musk use his newfound power to change the shape of the company, such as moving it to Scott Galloway's Subscription model suggestion, or move on?
The proposal would involve Musk owning 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before he would begin investing in Twitter and a 38% premium over the day before his investment was publicly announced.
Twitter confirmed it has received the offer, and would "carefully review" the contents, and determine its response based on the best interest of the company and its shareholders.