4 Amazing Quotes From the $43B Elon Musk Twitter Offer


This morning, Elon Musk announced that he has submitted an offer to acquire Twitter (NYSE:TWTR). Now, the internet is buzzing. In a U.S. Securities & Exchange Commission (SEC) filing, Musk wrote a letter to Twitter Board Chairman Bret Taylor detailing his bid to acquire all TWTR stock at $54.20 per share. This comes on the heels of Musk becoming the company’s largest shareholder.

Twitter (TWTR) app being shown on a phone screen held in a person's hand.
Source: Worawee Meepian / Shutterstock.com

When it first came to light that the Tesla (NASDAQ:TSLA) CEO would not be joining the Twitter board, rumors of a total takeover quickly began to swirl. Now, it seems that Musk has made it clear he’s seeking to control the platform and take it private. While investors wait for updates, experts also maintain that Twitter will have a hard time saying no.

It’s no secret that Musk is one of Twitter’s most popular and influential users. However, Musk has also been fairly vocal in his criticisms of the platform. A self-proclaimed “free speech absolutist,” Musk has rebuked the company’s policies on numerous occasions. In his offer, the executive called free speech a “societal imperative for a functioning democracy.”

There are more important details for investors to consider, however. Let’s take a closer look and what the Tesla CEO has said — and what it means for TWTR stock.

Inside the Elon Musk Twitter Offer

  • “I am not playing the back-and-forth game.”
  • “I have moved straight to the end.”

These two quotes from the Elon Musk Twitter offer make the CEO’s exact mission and mindset clear. For one, they subtly imply what many investors had already suspected — that Musk had initially planned to keep acquiring shares. Now, these statements show Musk remains intent on charging ahead. In his letter, Musk highlights the platform’s “extraordinary potential” if made private.

  • “It’s a high price and your shareholders will love it.”

True, Elon Musk’s offer for Twitter is a high price. As of this writing, TWTR stock trades at around $46 per share; the bid represents an 18% premium. Still, while shareholders certainly stand to profit from the deal, some will likely raise moral objections. Some see a Musk takeover as a chance for former President Donald Trump’s account to be reinstated. There’s no definitive conclusion as to how investors as a whole feel about it.

  • “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 […] This is not a threat, it’s simply not a good investment without the changes that need to be made […] And those changes won’t happen without taking the company private.”

Some of the last sentences from Elon Musk’s Twitter offer remind investors that, as it currently stands, Musk sees the company as an unprofitable investment. This raises an important question; if his offer is not accepted, what will it mean for TWTR stock? When Elon Musk became the company’s top shareholder, former Reddit CEO Ellen Pao speculated that it would be bad for the platform. If the Tesla CEO were to unload all his shares, it would very likely push TWTR stock down. Until Twitter fully responds to the offer, though, much remains uncertain.

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.

Article printed from InvestorPlace Media, https://investorplace.com/2022/04/4-amazing-quotes-from-the-43b-elon-musk-twitter-offer/.

©2023 InvestorPlace Media, LLC