California, Europe Brief News – The news of Elon Musk buying Twitter has attracted a lot of attention from different media outlets and the general public. Elon Musk, among one of the richest persons in the world, has made an offer to Twitter to buy it for $41.1 billion and has claimed if his offer is to be rejected, he will have to reconsider his standing on being a shareholder.
Furthermore, he is willing to pay at a premium price of $54.20 per share which is quite high if looking at the pricing of 1st April 2022. This news was made public earlier today when the filing was being processed with the USA Securities and Exchange Commission (SEC).
I made an offer https://t.co/VvreuPMeLu
— Elon Musk (@elonmusk) April 14, 2022
This move will result in Elon Musk becoming the biggest shareholder of Twitter which might even make him a part of the Twitters Board. Elon Musk has even explained in the letter to Twitter that he believes Twitter is a good investment, though he thinks it could be performing better if it gets the required expertise.
Elon Musk outrightly expressed his interest in making Twitter a public company. Since he doesn’t think that the current state of Twitter can make any significant changes.
Twitters Response
The Chief Executive Officer of Twitter, Parag Agrawal announced some time ago that Elon Musk won’t be on the Twitter board and he stated:
“Elon is our biggest shareholder and we will remain open to his input.”
The move sparked suppositions about the decision’s incentive. One widely publicized explanation for this was that, as a board member, Musk could’ve been restricted to retaining a total of 14.9 percent of Twitter. As a result, joining the board would have severely constrained his ability to acquire the social media platform.
Elon Musk Buying Twitter
“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,”
Elon Musk stated in a letter to Twitter’s Chairman of the Board.
“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.”
Current Situation
Currently, Elon Musk is being sued for how he had handled this situation and publicly declared his decision of buying Twitter. According to the legal case, this latency saved him approximately $143 million because he bought his shares at a devalued price, resulting in shareholders going to sell their shares being sold at a lower price.
