Elon Musk is ‘not sure’ he can buy Twitter but has a plan B

Elon Musk is not sure he can buy Twitter but

After installing himself as the main shareholder of Twitter this month, the wealthy American Elon Musk now wants to completely buy the social network. For this, the boss of Telsa and Space X puts on the table 43 billion dollars. The company said, ” consider this offer “. So why is the billionaire launching this offensive?

Elon Musk wants to buy Twitter, he says, to transform it. This is what he writes to the policeman of the American Stock Exchange, the SEC, in his letter which reveals his proposal.

I offer to buy 100% of Twitter for $54.20 per share in cash “, Can we read in this document, also addressed to the chairman of the board of directors of the company, Bret Taylor.

The billionaire’s proposed price would value Twitter at $43.4 billion, up from around $36 billion today. Take it or leave it offer.

The American business leader, of South African origin, explains that it will be its best offer and its final offer “. In case of refusal, Elon Musk threatens to “ reconsider its position as a shareholder » freshly acquired within the group.

The multibillionaire acquired just over 9% of the capital of the social network at the beginning of the month (73.5 million ordinary shares). An acquisition that he had justified by the ” major role that Twitter plays in favor of freedom of expression around the world “.

In his new letter, he expresses a certain disappointment since this investment: “ The company, according to him, will not serve this imperative in its current form. »

Elon Musk is very active and widely followed on Twitter, where 82 million subscribers follow him. He regularly criticizes the operation of the site, accusing for example the algorithm of violating freedom of expression by displaying tweets rather than others.

Since I made my investment, I realized that the business would not thrive and serve its societal imperative in its current form.

Since his arrival, Elon Musk has multiplied the tweets to suggest modifications or additions that he would like to see appear on the microblogging site, in particular an “edit” button or the removal of advertisements.

In the event of an acquisition, the multi-billionaire wants to take the social network out of the Wall Street Stock Exchange. To have total control. He ends his takeover proposal with these words: Twitter has extraordinary potential. I will unlock it. »

►Read again: Elon Musk lands on Twitter

According to Forbes, Mr. Musk’s personal fortune is close to $274 billion, which would make him the richest man in the world today.

On Wall Street, Twitter’s stock rose 2.2% to $46.86 at the start of trading on Thursday, April 14. She flew away when Mr. Musk’s offer was made public.

Reaction

By communicating, Twitter confirmed that it had received “ Elon Musk’s unsolicited, non-binding offer to acquire all of the company’s outstanding common stock for $54.20 in cash “.

Twitter’s board of directors will carefully review the offer to determine the course of action it believes is in the best interests of the company and all Twitter shareholders. “, added the group.

Elon Musk says he is not trying to ” make money »

“JI think it’s going to be quite painful and I’m not sure I can buy it “Admitted Elon Musk. Interviewed during the Ted2022 conference, broadcast live from Vancouver, Canada, he assured that he was not looking to ” make money “. “ I just have a strong hunch that having a public, broadly inclusive platform that you can trust is extremely important for the future of civilization. “, he added during his first speech since the announcement of his proposal.

Pressed on the question of financing, he repeated that he had the “ sufficient funds and a plan B if Twitter’s board refuses his offer, without giving further details. But he explained that he hoped above all to rally to his project as many existing shareholders as possible.

One of the shareholders has already reacted: Saudi Prince Al-Walid bin Talal said on Twitter that he “ rejected ” his offer. ” I don’t think Elon Musk’s proposition ($54.20) comes anywhere close to Twitter’s intrinsic value, given its growth prospects. I am one of Twitter’s largest and oldest shareholders, and Kingdom Holding Company (its investment fund, editor’s note) and I reject this offer “, he wrote on the network Thursday.

With agencies



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