In the latest twist in the Elon Musk and Twitter debacle, according to a Securities and Exchange Commission (SEC) filing, the Tesla and SpaceX CEO has now offered to buy 100% of the social networking site. This is after he had gone from buying a 9.2% stake in the company, getting appointed to the board of directors, and then declining the board seat, all within a few weeks.
So how much is the world's richest man offering to pay for 100% of Twitter? At an offer of $54.20 a share, he is willing to part ways with a hefty $41 billion, in cash, for the company which he is planning to take private if the offer is accepted and "unlock its potential".
According to the SEC filing, in a text message to Bret Taylor, the Chairperson of Twitter's board, Elon made it clear that since becoming a shareholder, he realized that the company will neither thrive nor facilitate freedom of speech which he views as a harbinger of a properly functioning democracy, something he feels can only be achieved if Twitter becomes a private company.
According to Elon, his offer is a 54% premium over Twitter's stock value the day before he bought the 9.2% stake and also a 38% premium over the day his shareholding was announced, making the offer a hard one to resist for Twitter's board who meet today to discuss the offer. He also mentioned that the offer was his best and final and that if it is rejected, he would have to reconsider his shareholding in the company.
In a story with such twists and turns, it will be interesting to see what happens next. Will Elon own Twitter by the end of the day or will the board reject the lucrative offer, which will probably be viewed by most shareholders as acting against their financial interests.
We wait to see.