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Twitter’s board of directors will be meeting soon to discuss Elon Musk‘s $41.39 billion hostile takeover bid, with the company saying it will ‘carefully review the proposal’. 

The Twitter board will meet on Thursday morning at 10am PT consider Musk’s bid to take the company private, according to CNBC, after Musk in an offer letter told the chairman: ‘Twitter has extraordinary potential. I will unlock it.’  

‘The Twitter Board of Directors will carefully review the proposal to determine the course of action that it believes is in the best interest of the Company and all Twitter stockholders,’ the company said in a statement. 

Musk insisted in his offer letter that his bid was his ‘best and final offer’, adding that ‘if it is not accepted, I would need to reconsider my position as a shareholder,’ a regulatory filing showed. 

His offer price of $54.20 per share represents a 38 percent premium to the closing price of Twitter’s stock on April 1, the last trading day before the Tesla CEO publicly revealed his 9.2 percent stake in the company, sending the stock popping. 

The offer figure also includes the digits ‘420,’ a reference to marijuana that Musk frequently jokes about.  

Shares of Twitter jumped 5.6 percent at the opening bell Thursday, to $48.40. But the stock remains 11 percent below Musk’s offer price, suggesting that investors do not view the success of his bid as inevitable.  

Musk, who is Twitter’s biggest shareholder, sent his offer letter on Wednesday night, telling the company’s board that ‘it’s a high price and your shareholders will love it’. 

He is the world’s richest man, with a net worth of $282 billion and a fortune worth $100 billion more than Amazon founder Jeff Bezos. Musk announced his bid in a tweet on Thursday morning, saying simply: ‘I made an offer.’ 

Outspoken Musk, known for his social media antics, told Twitter board chair Bret Taylor: ‘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.’ 

Billionaire Elon Musk has offered to buy Twitter for $41.39 billion, a regulatory filing showed on Thursday

In a tweet, the SpaceX CEO simply wrote: 'I made an offer'

In a tweet, the SpaceX CEO simply wrote: 'I made an offer'

In a tweet, the SpaceX CEO simply wrote: ‘I made an offer’

Shares of Twitter jumped nearly 12 percent before the market open. The stock is still down from its 52-week high of about $73

Shares of Twitter jumped nearly 12 percent before the market open. The stock is still down from its 52-week high of about $73

Shares of Twitter jumped nearly 12 percent before the market open. The stock is still down from its 52-week high of about $73 

Twitter will review the offer with advice from Goldman Sachs and Wilson Sonsini Goodrich & Rosati, a source told Reuters.

Musk said U.S. investment bank Morgan Stanley was acting as financial adviser for his offer. He did not specify how he would finance the transaction if it goes ahead.

Though Musk is the world’s richest man, much of his wealth is not liquid, consisting of his ownership stakes in Tesla and SaceX. 

Musk would have to sell 4 percent of his Tesla shares to fully finance the deal himself, a move he is seen as unlikely to take, meaning that he will likely secure outside financing using his stock as collateral. 

However, Musk has a contentious relationship with some major investment banks, including JPMorgan Chase, which is currently involved in suits and countersuits with Tesla over Musk’s tweets and disputed bond contracts. 

The chances of Musk’s Twitter takeover bid succeeding seemed very much up in the air. Because his offer letter hints at a management shakeup, the bid is likely to be fiercely opposed by current Twitter execs, including CEO Parag Agrawal, who also holds a board seat. 

But Wedbush analyst Dan Ives called Musk’s offer a ‘historic move’ in a note, adding ‘ultimately we believe this soap opera will end with Musk owning Twitter after this aggressive hostile takeover of the company.’ 

Ives wrote that it was ‘get out the popcorn time’ and predicted ‘many twists and turns in the weeks ahead as Twitter and Musk walk down this marriage path.’ 

Musk wrote in his offer letter: ‘I am offering to buy 100 percent of Twitter for $54.20 per share in cash, a 54 percent premium over the day before I began investing in Twitter and a 38 percent 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.’

Musk added that his offer was not a ‘threat’, but ‘it’s simply not a good investment without the changes that need to be made.’

He continued: ‘And those changes won’t happen without taking the company private.’ 

He called that price his best and final offer, although the billionaire provided no details on financing. The offer is non-binding and subject to financing and other conditions.  

The total deal value was calculated based on 763.58million shares outstanding, according to Refinitiv data. 

Earlier this week, Musk rejected an offer to join Twitter’s board after disclosing his stake in the company, a move which analysts said signaled his intention to take over the company as a board seat would have limited his stake to just under 15 percent.

Musk has amassed over 80 million followers since joining the site in 2009 and has used the platform to make several announcements, including teasing a go-private deal for Tesla that landed him in hot water with regulators. 

The outspoken Tesla CEO, known for his social media antics, told Bret Taylor, the 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’

Musk added that his offer was not a 'threat', but 'it's simply not a good investment without the changes that need to be made'

Musk added that his offer was not a 'threat', but 'it's simply not a good investment without the changes that need to be made'

Musk added that his offer was not a ‘threat’, but ‘it’s simply not a good investment without the changes that need to be made’

Musk, who has more than 81 million followers on Twitter, recently added a new picture of himself as a much younger man

Musk, who has more than 81 million followers on Twitter, recently added a new picture of himself as a much younger man

Musk, who has more than 81 million followers on Twitter, recently added a new picture of himself as a much younger man

Musk has been a vocal critic of of Twitter in recent weeks, mostly over his belief that it falls short on free speech principles. 

The social media platform has angered followers of Donald Trump and other far-right political figures who’ve had their accounts suspended for violating its content standards on violence, hate or harmful misinformation. Musk also has a history of his own tweets causing legal problems. 

Musk’s move comes after he tweeted on Saturday asking whether the social media network was ‘dying’ and to call out users such as singer Justin Bieber, who are highly followed but rarely post. 

In other weekend tweets, Musk posted joke polls on whether to drop the ‘w’ from Twitter’s name and on converting its San Francisco headquarters to a homeless shelter ‘since no one shows up anyway.’

He also suggested removing ads, Twitter’s main source of revenue.

The second tweet about deleting 'w' saw Musk give two options without no as an answer, with 55.8 percent saying 'yes' and 44.2 percent 'of course' of 445,158 votes to-date

The second tweet about deleting 'w' saw Musk give two options without no as an answer, with 55.8 percent saying 'yes' and 44.2 percent 'of course' of 445,158 votes to-date

The second tweet about deleting ‘w’ saw Musk give two options without no as an answer, with 55.8 percent saying ‘yes’ and 44.2 percent ‘of course’ of 445,158 votes to-date 

In the first post, Musk seemingly took aim at the company's lax remote working policies, saying he came up with the plan 'since no one shows up anyway.' So far, 91.1 percent of 923,459 respondents voted in favor of the plan

In the first post, Musk seemingly took aim at the company's lax remote working policies, saying he came up with the plan 'since no one shows up anyway.' So far, 91.1 percent of 923,459 respondents voted in favor of the plan

In the first post, Musk seemingly took aim at the company’s lax remote working policies, saying he came up with the plan ‘since no one shows up anyway.’ So far, 91.1 percent of 923,459 respondents voted in favor of the plan

It comes after analysts speculated that Musk‘s roller coaster journey as Twitter‘s largest shareholder could be part of a ploy to stage a hostile take-over of the company.

Musk revealed last week that he had become Twitter’s largest shareholder, with a 9.2 percent stake in the company, on March 14.

One day after he disclosed his stake, platform CEO Parag Agrawal announced the Tesla co-founder had been invited to the join the company’s board of directors, a seat he gladly accepted.

By accepting the board seat, Musk was limited in how much of the company’s shares he could own, with a 14.9 percent cap. 

However, on Sunday Parag announced the SpaceX CEO formally declined his board seat.

Musk, 50, signed the new filing with the Securities and Exchange Commission (SEC) Monday indicating he had declined his board seat.

One day after he disclosed his stake, platform CEO Parag Agrawal (pictured) announced the Tesla co-founder had been invited to the join the company's board of directors, a seat he gladly accepted

One day after he disclosed his stake, platform CEO Parag Agrawal (pictured) announced the Tesla co-founder had been invited to the join the company's board of directors, a seat he gladly accepted

 One day after he disclosed his stake, platform CEO Parag Agrawal (pictured) announced the Tesla co-founder had been invited to the join the company’s board of directors, a seat he gladly accepted

The document stated Musk could ‘express his views’ about Twitter’s policies and services to the board or on social media. He could also purchase additional shares or sell Twitter stock, if he saw fit. 

Agrawal said the board would still ‘remain open’ to Musk’s input, while also warning: ‘There will be distractions ahead but our goals and priorities remain unchanged.’ 

‘The board and I had many discussions about Elon joining the board, and with Elon directly,’ wrote Agrawal. ‘We were excited to collaborate and clear about the risks.

‘We also believed that having Elon as a fiduciary of the company where he, like all board members, has to act in the best interests of the company and all our shareholders, was the best path forward. The board offered him a seat.’

Agrawal continued: ‘We announced on Tuesday that Elon would be appointed to the board contingent on a background check and formal acceptance.

However, on Sunday Parag announced the SpaceX CEO formally declined his board seat

However, on Sunday Parag announced the SpaceX CEO formally declined his board seat

However, on Sunday Parag announced the SpaceX CEO formally declined his board seat

On April 5, Elon Musk vowed to 'make significant improvements' to Twitter after revealing his large stake in the social media platform and intention to join the board of directors

On April 5, Elon Musk vowed to 'make significant improvements' to Twitter after revealing his large stake in the social media platform and intention to join the board of directors

On April 5, Elon Musk vowed to ‘make significant improvements’ to Twitter after revealing his large stake in the social media platform and intention to join the board of directors

‘Elon’s appointment to the board was to become officially effective 4/9, but Elon shared that same morning that he will no longer be joining the board.’

Agrawal did not specify why Musk was not joining the company’s board.

But, he added: ‘I believe this is for the best.

‘We have and will always value input from our shareholders whether they are on our board or not.’

The 37-year-old said: ‘Elon is our biggest shareholder and we will remain open to his input.’

‘The decisions we make and how we execute is in our hands, no one else’s.

‘Let’s tune out the noise, and stay focused on the work and what we’re building.’

Source: Daily Mail

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