Elon Musk offers to buy Twitter for $41.39B, Wall Street weighs in
Elon Musk refuses to stay out of the headlines these days. After initially purchasing a 9% stake in Twitter, the richest man in the world turned around and rejected a board seat, confusing pretty much everybody. Now, as of this morning, we know why.
He wants 100%.
Here’s the formal letter Musk sent:
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% of Twitter for $54.20 per share in cash, a 54% premium over the day before I began investing in Twitter and a 38% premium over the day before my investment was publicly announced. 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 has extraordinary potential. I will unlock it.
There it is in black and white. Looks like all Musk wants to do is buy all of Twitter and take it private. Open and shut case, right?
Well, not so fast.
Because we have a team of crack reporters here at The Liberty Line, we reached out to some in the know finance guys to get their take. It involves price manipulation, a potential pissing contest with Jeff Bezos, and being 420-friendly.
Our sources’ working theory on the offer is that Musk has no intention of buying all of Twitter. Instead, this is a patented troll job through and through, meant to raise the share price.
He offered $54.20 per share, around $10 more than the current share price. So, on the one hand, you have to entice shareholders with good-sized profits. But on the other hand, Elon Musk is the world’s richest troll, so he could just be doing this because he can.
Twitter CEO Parag Agrawal warned employees of incoming distractions once Musk declined a board seat. Did he think an offer was coming? Or did Agrawal know it’s just the cost of doing business with a weirdo like Elon?
Sources on Wall Street certainly feel it’s the latter. They almost all agreed that Musk’s obsession with the weed-smoking holiday 4/20 played a role.
If you cut the 5 off of his offer per share, you get 4.20. While it’s become an internet meme, one Elon really seems to love. It wouldn’t even be the first time he used a 4/20 reference to manipulate a stock price.
“He did the same shit with Tesla a few years ago, saying he’s going to take it private with financing secured at $420/share,” our source said. Plus, with the announcement’s timing, April 20th is only a week away.
Hard to argue with any of that evidence, really. Sure, I’m a little skeptical because Musk literally insulted Twitter in that message, but these guys have studied Elon and business in general far more than I have.
He could liquidate enough assets to buy Twitter while remaining $40 billion richer than Jeff Bezos. My lord. I wouldn’t be surprised if this is all one big middle finger to the competition.
At the same time, he’s got some pretty good ideas for Twitter. Verify users to rid the app of bots, an edit button, etc. Exciting stuff, regardless of how you feel about the guy.
I’m by no means a Muskovite, but I’ll be locked in on this story as it develops. So keep up with it here on TLL.
Mandatory Credit: FOX News