According to documents filed with the SEC, Musk made an offer to buy the company for $54.20 per share in cash in a hostile takeover. If his offer isn't accepted, Musk will likely sell all of his shares.
Musk, the wealthiest person in the world with a net worth of $260 billion, made headlines earlier this month when it was announced that he was the largest shareholder of the company. Musk was going to join the board, but backed out at the last minute, with speculation that he may want to buy the entire company.
Musk threatened to leave if he couldn't take the company private with his bid.
In his SEC filing, Musk said that he invested in the company because he believed in its potential to be the platform for free speech around the globe.
The company will not thrive or serve this societal imperative in its current form since I made my investment. Musk said that the company needs to be transformed into a private company.
As a result, I am offering to buy all of the stock in the company for $54.20 per share in cash, a 50% premium over the day before I began investing, and a 38% premium over the day before my investment was publicly announced. If my offer is not accepted, I would need to rethink my position as a shareholder.
It has extraordinary potential. I will open it.
The document states that Musk's offer of $54.20 per share is his final offer and he is not playing the back-and-forth game.
If the deal doesn't work, I would need to rethink my position as a shareholder.
Musk said that it was not a threat and that the changes needed to be made.
Musk makes crude and juvenile jokes that can get him into trouble. The 50-year-old recently floated the idea of changing the name of the social networking site to "Titter" and once compared Canadian Prime Minister Trudeau to Hitler. Musk deleted both of them.
Musk got a slap on the wrist from the SEC for his jokes about the share price of the company. When you are the wealthiest person in the world, a fine of just $40 million is a lot of money.
Musk was sued this week by an investor for failing to properly disclose his stake in the company. Musk had to file a notice with the SEC once he had bought 5% of the social network. Musk didn't file the paperwork until April 4. The person who is suing Musk in this case lost money when he sold his shares during that period of illegal secrecy.
What will happen now? The company has to either accept the offer or deal with a lot of angry shareholders.
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