Billionaire Elon Musk offers Sh4.79 trillion to buy Twitter

Technology

Billionaire Elon Musk offers Sh4.79 trillion to buy Twitter


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Tesla CEO Elon Musk reacts during the unveiling of the new Tesla Model Y in Hawthorne, California on March 14, 2019. AFP PHOTO | FREDERIC J. BROWN

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Summary

  • Billionaire Elon Musk has offered to buy Twitter for about $ 41 billion (Sh4.79 trillion), just days after rejecting a seat on the social media company’s board.
  • Musk’s offer price of $ 54.20 per share, which was disclosed in a regulatory filing on Thursday.
  • Twitter’s shares jumped 12 percent in premarket trading.

Billionaire Elon Musk has offered to buy Twitter for about $ 41 billion (Sh4.79 trillion), just days after rejecting a seat on the social media company’s board.

Musk’s offer price of $ 54.20 per share (Sh6257.39), which was disclosed in a regulatory filing on Thursday, represents a 38 percent premium to Twitter’s April 1 close, the last trading day before the Tesla CEO’s more than 9 percent stake in the company was made public.

Twitter’s shares jumped 12 percent in premarket trading.

“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,” Musk said in a letter to Twitter Chairman Bret Taylor.

“My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder,” Musk said.

Earlier this week, Musk said he had abandoned a plan to join Twitter’s board, just as his tenure was about to start. Taking the board seat would have prevented him from a possible takeover of the company.

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