In an interesting turn of events, billionaire businessman, Elon Musk, has offered to buy Twitter for $41 billion, just a few days after rejecting a seat on the board of the company.
Musk offered to buy Twitter entirely at a price of $54.50 per share. This was disclosed in a regulatory filing on Thursday, according to Reuters.
In a letter to Twitter’s Chairman, Bret Taylor, the Tesla CEO indicated that his intention is driven by the fact that the company cannot thrive in its current form and requires transformation.
“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 into a private company.
“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.
It was gathered that Musk had become the largest shareholder in Twitter after acquiring a 9.2% stake in the company. Following that, Twitter CEO, Parag Agrawal, revealed that Musk would be joining the board of Twitter a member, to which Musk replied that he was looking forward to it.
Musk, who is currently the richest person in the world, later made a U-Turn and rejected the offer to join the board. The move meant that he could buy as many shares in the company as he wanted because he would not be subject to an agreement that Twitter has with its board members that limit them to owning a maximum of 14.9% stake in the company.
Following that, Musk was sued by former Twitter shareholders who claim that they missed out on the jump in its stock price because he delayed in revealing that he had acquired a large stake in the microblogging platform.
The shareholders filed a proposed class action in Manhattan federal court, New York, where they said Musk made “materially false and misleading statements and omissions” by not revealing he had invested in Twitter by March 24 as federal law requires.
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