Elon Musk is indeed planning to buy Twitter, this was just announced by a publication of the regulator. Last week Musk already bought 9 percent of the Twitter shares, now he has made an offer of 41 billion dollars for the rest of the stock, about 38 billion euros. This comes down to 54.20 dollars per share.
What the board of Twitter already feared has just become a reality. Musk wants to buy Twitter, according to documents released by the regulator. Musk believes that Twitter has much more potential than the platform is currently delivering. Musk is one of the most popular users on the social media platform, he has 81 million followers. There are only a handful of people who have more followers. Many celebrities have moved their activities from Twitter to Instagram. They still have Twitter profiles, but don’t use them very often.
Twitter has been around for a long time, but its popularity comes and goes. During major news events, it is a good source, because people will then turn to Twitter to report from the scene or to get the latest unfiltered news. If you look at “normal” social media use, Twitter was never the most popular platform, first it was Facebook and now Instagram is much more popular. Musk sees opportunities to turn the tide, perhaps a takeover is not a bad idea.
Musk vs the Twitter board
The big question is how Twitter’s board will react to all this. For the shareholders of Twitter, it is a good offer. It is a premium of 38 percent on the value of April 1st. The day before Musk decided to buy 9 percent of the Twitter shares.
Twitter’s board may have already seen this takeover coming. Because they offered Musk a seat on the board. If you are on the board, you may not own more than 15 percent of the shares of the company. The board used this method to try and prevent Musk from making an offer. Musk, therefore, declined the offer to a position on the board and has now made an offer for the entire company. After which he can replace everyone on the board if necessary and still participate in it.