Tesla CEO Elon Musk has said he has ‘Plan B’ if Twitter’s board decides to reject his offer of buying out the social media company. Musk also said he will endeavor to keep as many shareholders in privatised Twitter as allowed by law.
The world’s richest man has already made an offer to buy Twitter Inc. He is willing to pay USD 43 billion for the entire stake of the company. According to a filing with the US Securities and Exchange Commission on Thursday, the billionaire will shell out USD 54.20 per share in cash, a 54 per cent premium over the January 28 closing price.
“I am offering to buy 100 per cent of Twitter for USD 54.20 per share in cash, a 54 per cent premium over the day before I began investing in Twitter, and a 38 per cent premium over the day before my investment was publicly announced,” he wrote. “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 Twitter needs to be transformed as a private company. “Will endeavor to keep as many shareholders in privatized Twitter as allowed by law,” he said in a tweet on Friday.
Twitter Chief Executive Officer Parag Agrawal sought to reassure employees during an all-hands meeting on April 14 that the company was not being “held hostage” by news of Elon Musk’s offer to buy the company, a source familiar with the matter told Reuters.
Elon Musk said he has a ‘Plan B’ if Twitter board doesn’t approve of his offer to purchase the company, according to The Spectator Index.
Musk said, “If the deal doesn’t work, given that I don’t have confidence in management nor do I believe I can drive the necessary change in the public market, I would need to reconsider my position as a shareholder. This is not a threat, it’s simply not a good investment without the changes that need to be made.”
Musk recently disclosed his 9.2 per cent shareholding in Twitter, thus becoming the largest shareholder of the company. Twitter also offered Musk to appoint him to its board as the company had believed it was “the best path forward”, with board members having to “act in the best interests of the company and all our shareholders”.
However, the Tesla boss rejected the offer. “Elon shared that same morning that he will no longer be joining the board,” Twitter CEO Parag Agrawal said.
With funds held by the Vanguard group taking a 10.3 per cent holding in Twitter, the group has now become the largest shareholder in the San Francisco-headquarter social media major.
The Wall Street Journal on Friday reported that Twitter is considering measures to prevent Elon Musk from increasing his stake significantly in the company.
Twitter CEO Agrawal sought to reassure employees during an all-hands meeting on April 14 that the company was not being “held hostage” by news of Elon Musk’s offer to buy the company, Reuters reported.
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