Elon Musk surprise launches $43 billion offer to buy Twitter

The average billionaire buys yachts, cars and buildings. But Elon Musk is not your average billionaire. The richest man in the world, owner of an immense fortune that is around 260,000 million dollars according to Bloomberg – the next, by far, is Jeff Bezos, founder of Amazon, with 180,000 million – wants to be the owner of his own social network , and has offered $43 billion (about $37 billion) to buy Twitter at $51.4 a share, a 38% premium to the company’s April 1 price. The titles of the social network already notice it in the operations prior to the opening of Wall Street, with a rise of close to 8%.

The owner of the SpaceX aeronautics and CEO of the electric vehicle manufacturer Tesla surprised just a few days ago by entering the capital of Twitter, one of his favorite entertainments, and where his popularity is notorious, as evidenced by his more than 81 million followers. . On April 4, he took over 9.2% of the company and thus became its main shareholder, according to what the company informed the United States Securities and Exchange Commission (SEC). Now Musk is going a step further, and is committed to gaining full control through a hostile takeover bid against which it is unknown if there will be resistance. “It is my best and last offer and if it is not accepted, I would have to reconsider my position as a shareholder,” Musk said in a letter to Twitter president Bret Taylor.

The phrase can also be read as a threat. Twitter shareholders now see their titles appreciate strongly, but if Musk does not achieve his goal of taking control of the company and gets rid of them, the fall would be as vertical as the rise has been in recent days.

Musk declined on Monday to join the firm’s board of directors after taking the stake. “Since making my investment, I have realized that the company will not prosper or meet this social imperative in its current form. Twitter must become a private company, ”he adds in the letter. That would mean taking Twitter out of the stock market. And it doesn’t seem like it’s the last change he would implement if successful. In recent weeks, he launched a poll on Twitter about whether the social network should incorporate a button to edit messages. Right now that option doesn’t exist, so if someone posts something and later regrets it, they can just delete it and hope there aren’t any screenshots going around.

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The move brings the sector back to the fore after other famous acquisitions. And the increase in prices paid shows its growing influence and the boom of users who live. In 2006, Google bought YouTube for $1.65 billion. In 2012 Facebook took over Instagram after spending $1 billion. In 2014, Mark Zuckerberg’s company again starred in a multimillion-dollar operation by taking over WhatsApp for 19,000 million dollars. And he even more paid Microsoft for LinkedIn in 2016, when he paid $26.2 billion.

If confirmed, the purchase would open a chain of questions. Twitter is one of the largest speakers on the planet, with 217 million users on average, according to data from the last quarter of 2021. Will Musk try to use that influence in some way to promote his own interests? Another dilemma is to know if under his baton he will be able to achieve the profitability that he does not have now: in 2021 he lost 221 million dollars despite entering 5,077 million. The trend, in any case, is positive: in 2020 the losses were much higher, of 1,135 million.

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Elon Musk surprise launches $43 billion offer to buy Twitter