In a stunning move, Tesla CEO Elon Musk has made an audacious $42 billion offer to take over Twitter. Musk aims to buy 100 percent of Twitter by offering $54.20 per share in an all cash deal.
Musk is offering to "acquire all of the outstanding Common Stock of the Issuer not owned by the Reporting Person for all cash consideration valuing the Common Stock at $54.20 per share," The Verge reported.
The proposal was delivered in a letter to Twitter on April 13. Musk believes that Twitter needs to go private to go through the changes that need to be made.
Musk Wants to Unlock Twitter's Extraordinary Potential
Musk claims he can unlock Twitter's extraordinary potential. The Tesla boss also vowed to reconsider his position as a shareholder if his offer is not accepted.
"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," said Musk in his filing with the US financial regulator.
Twitter Needs To Be Transformed Into A Private Company
He also pointed out that after making his investment in the company he has realized that "Twitter will neither thrive nor serve this societal imperative in its current form" and it needs to be transformed into a private company.
After it emerged that Musk holds a 9.2% stake in Twitter, the company offered Musk a seat on its board. Last week, Tesla's boss could have joined the board but he decided against it.
Twitter's chief executive Parag Agrawal had called Musk's move 'the best' for not joining the board and promised that the company values the inputs from the shareholders whether they are on our board or not.
Musk has been a fierce critic of Twitter policies and he believed that the social media platform doesn't respect freedom of speech. Before buying stakes in Twitter, Musk also conducted an online survey where 70% of people responded that the micro-blogging site hinders free speech.