HERE. WE. GO.

In a new filing with the SEC, Elon Musk offered to buy Twitter and take the company private for $54.20, an 18% premium over yesterday’s closing price:

This would value the deal at over $40 billion. Musk’s net worth is close to $300 according to this CNN article from last week (there are different estimates flying around):

The stock is up in pre-market trading this morning:

Details of the offer here:

Musk noted in his letter to Twitter’s board that the price he’s offering for the stock is a “54% premium over the day before I began investing in Twitter and a 38% premium over the day before my investment was publicly announced”:

Musk told Twitter that this is his “best and final offer, adding that “Twitter has extraordinary potential. I will unlock it.” He also threatened to sell his current position in the company if the offer is not accepted:

Here’s the full text of his letter and what looks to be from text and voice messages:

Exhibit B

Bret Taylor

Chairman of the Board,

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.

As a result, I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before I began investing in Twitter and a 38% premium over the day before my investment was publicly announced. My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder.

Twitter has extraordinary potential. I will unlock it.

Script

[SEND VIA TEXT]

As I indicated this weekend, I believe that the company should be private to go through the changes that need to be made.

After the past several days of thinking this over, I have decided I want to acquire the company and take it private.

I am going to send you an offer letter tonight, it will be public in the morning.

Are you available to chat?

 

[VOICE SCRIPT]

1. Best and Final:
a. I am not playing the back-and-forth game.
b. I have moved straight to the end.
c. It’s a high price and your shareholders will love it.
d. 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.
i. This is not a threat, it’s simply not a good investment without the changes that need to be made.
ii. And those changes won’t happen without taking the company private.

2. My advisors and my team are available after you get the letter to answer any questions
a. There will be more detail in our public filings. After you receive the letter and review the public filings, your team can call my family office with any questions.

Over to you, Twitter.

***

Editor’s note: This post has been updated. 

Tags: Elon Musk

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