Elon Musk submitted a bid with the SEC to acquire Twitter citing that the social media giant needs to be transformed as a private company.
In the latest 13D filing with the SEC, the world’s richest person noted that if the offer is not accepted, he would reconsider his position as a shareholder.
This comes less than a week after Musk had purchased over 70,000,000 Twitter shares or 9.2% of the platform’s passive stake, which subsequently made him the largest shareholder of the social media giant. He was soon appointed to Twitter’s Board of Directors.
As a result, the pre-market prices of TWTR surged by 25%.
Days later, Musk turned down his decision to join the company’s board of directors.
According to the filing, Musk believes Twitter has “extraordinary potential” and that he can help “unlock it.”
“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.”
Twitter has confirmed receiving an “unsolicited, non-binding proposal” from the Tesla chief to acquire all of the San Francisco-based company’s outstanding common stock for $54.20 per share in cash.
The press release also revealed that its Board of Directors will review Musk’s proposal to determine the course of action, keeping in mind the interest of the platform and all its stockholders.
Musk’s relationship with Twitter has been a tempestuous one, with several allegations being directed towards the tech mogul that he had deleted several tweets made over the past couple of days that were critical of the platform.