Elon Musk has made a bid to purchase Twitter for USD41 billion.

Billionaire Elon Musk has offered to buy Twitter for about USD41 billion, just days after rejecting a seat on the social media company's board.

Musk's offer price of USD54.20 per share, which was disclosed in a regulatory filing on Thursday, represents a 38% premium to Twitter's April 1 close, the last trading day before the Tesla CEO's more than 9% stake in the company was made public.

Musk announced the offer on Thursday as part of a disclosure to the US Securities and Exchange Commission. Based on previous statements (mostly in the form of tweets), Musk would love to change his favorite social network quote significantly. He has expressed that he thinks the platform might be dying in its current form, with a lot of big accounts with huge follower numbers rarely posting. Bloomberg cites a letter Musk directed at the Twitter board, saying that Twitter “will neither thrive nor serve [its free speech] societal imperative in its current form. Twitter needs to be transformed as a private company.”

Musk has also expressed an interest in a few new features, like the addition of an edit button that would allow users to retroactively change tweets or a verification mark for those paying for the social network's premium subscription, Twitter Blue.

As for raw numbers, Musk can easily afford the takeover. He is supposedly worth around USD260 billion, so a USD43 billion takeover would make nothing more but a small dent for his cash flow.

Meanwhile, some trouble is brewing for Musk's initial investment in Twitter. A shareholder has launched a class action lawsuit, saying that Musk didn't disclose his 5% stake fast enough.

 Twitter's shares jumped 12% 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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