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Elon Musk swoops down on Twitter with $41 billion cash offer -Breaking


© Reuters. FILEPHOTO: Elon Musk at the Automotive World News Congress at Renaissance Center Detroit, Michigan. January 13, 2015 REUTERS/Rebecca Cook/File Photo

Chavi Mehta and Uday Sampath Kumar

(Reuters). -Elon Musk offers to buy Twitter (NYSE) for approximately $41 billion. Musk stated that his social media critics need to take control of the company to bring about effective changes.

Musk’s share price of $54.20/share, disclosed in regulatory filings on Thursday, is 38% higher than Twitter’s April 1, closing, when the CEO had more than 99% ownership.

He declined an offer to be on Twitter’s Board of Directors earlier in the week. This was after he disclosed his shareholding, which analysts said indicated his intent to buy the company.

“Since I made my investment, I realize that the company won’t thrive or serve this societal imperative as it is now. Musk stated in a letter addressed to Bret Taylor that Twitter should be transformed to a private corporation.

Musk calls himself an absolute free-speech advocate and has been harshly critical of social media platforms and their policies. He recently conducted a Twitter poll asking people if the platform adheres the principle of freedom speech.

Musk stated, “My best and last offer” and that if the offer was not accepted, Musk would have to reconsider his position as shareholder.

Twitter will review Musk’s offer with advice from Goldman Sachs & Co (NYSE:) and Wilson Sonsini Goodrich & Rosati, a source told Reuters.

Premarket trading saw the company’s share price rise by 12%, and Tesla shares fell by 1%. According to data from Refinitiv, the total deal value was calculated using 763.58 millions shares.

Musk is now a household name with over 80 million followers. Since joining the site back in 2009 Musk used it to announce several deals, including one that teased a Tesla-go-private deal. This got him in serious trouble with the regulators.

Ex-Twitter shareholders also filed suit against him, alleging they lost out on the company’s stock price rise because he didn’t disclose their stake in time.

Twitter’s recent lower than expected user growth has raised concerns about the company’s future prospects. This is despite it pursuing big projects like audio chat rooms, newsletters and other initiatives to break long-standing stagnation.

Daniel Ives, a Wedbush Securities analyst wrote that it would be difficult for other bidders/consortiums to emerge. He also stated in a client letter that the Twitter board was likely to accept the bid and/or continue an active process of selling Twitter.

Ives explained that although there are many questions regarding financing and regulatory issues, as well as balancing Musk’s (Tesla) time, it will ultimately be a bid for Twitter to accept, based on the filing.

Musk spoke Morgan Stanley The financial advisor for this offer was (NYSE:).

“Twitter’s extraordinary potential is untapped.” Musk stated in his letter, “I will unlock it.”