Elon Musk doesn’t have ‘Confidence in Management’: Why Tesla Boss Wants Twitter Private

Elon Musk announced on Thursday that he intends to buy a 100 percent share in Twitter. The celebrity CEO has agreed to pay $54.20 a share in exchange for this, valuing the social networking platform at $43 billion. In a filing with the US Securities and Exchange Commission on Thursday, Tesla CEO Elon Musk disclosed the offer.

The offer “represents a 54% premium over the closing price of the Common Stock on January 28, 2022, the trading day before the Reporting Person began investing in the Issuer, and a 38% premium over the closing price of the Common Stock on April 1, 2022, the trading day before the Reporting Person’s investment in the Issuer,” according to Musk’s stock exchange filing.

Why Elon Musk Invested in Twitter?

Musk announced earlier this month that he had purchased a 9% share in the social media behemoth. As a result, he became Twitter’s largest shareholder and was offered a place on the board of directors. However, Twitter CEO Parag Agrawal announced earlier this week that the billionaire will not be joining the board of directors.

Musk explained his reasoning for investing in Twitter in a letter to Bret Taylor, chairman of the Twitter Board of Directors. “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. However, 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 as a private company. As a result, I am offering to buy 100 per cent of Twitter,” he mentioned.

Don’t Have Confidence in Management: Elon Musk

You’re mistaken if you assume this is another Musk prank. “I’m not going to play the back-and-forth game.” I’ve skipped ahead to the end. According to a memo released on Twitter by Musk, “that’s a high price, and your shareholders will love it.”

“If the deal doesn’t work, given that I don’t have confidence in management nor do I believe I can drive the necessary change in the public market, I would need to reconsider my position as a shareholder. This is not a threat, it’s simply not a good investment without the changes that need to be made,” he mentioned.

“And those changes won’t happen without taking the company private,” Musk further wrote.

Twitter’s Response

Elon Musk has made an unsolicited, non-binding offer to buy all of Twitter’s outstanding common shares for $54.20 per share in cash, according to the company.

“The Twitter board of directors will carefully consider the proposal to determine the course of action that it feels is in the company’s and all Twitter stockholders’ best interests,” the company said.