On Thursday morning, The Daily Wire reported that tech billionaire Elon Musk is offering to buy 100% of Twitter at $54.20 per share in cash in a deal that could be worth more than $40 billion. Thanks to the SEC filing submitted Wednesday evening, readers can see the exact pitch made by Musk in which he promises Twitter that his offer is a “high price and your shareholders will love it.”
Rebel News’ Ezra Levant flagged the voice and text message sent from Musk to Twitter, tweeting, “Do yourself a favor and take a minute to read Elon Musk’s text and voice message to Twitter’s executives.”
— Ezra Levant 🍁🚛 (@ezralevant) April 14, 2022
That portion of the SEC filing can be read here:
[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?
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.
The offer comes just days after Musk declined to take a position on Twitter’s board of directors.
“Elon Musk has decided not to join our board,” Twitter CEO Parag Agrawal said in a statement Sunday evening.
“There will be distractions ahead, but our goals and priorities remain unchanged,” the CEO added in his statement. “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.”
Bloomberg reported: “Musk can afford a takeover of Twitter. He’s currently worth about $260 billion according to the Bloomberg Billionaire’s Index, compared with Twitter’s market valuation of about $37 billion.”
Musk’s offer values the company close to $43 billion, but Bloomberg also noted that it is unclear how Musk will provide that in cash.
“This becomes a hostile takeover offer which is going to cost a serious amount of cash,” Neil Campling, head of TMT research at Mirabaud Equity Research, told Bloomberg. “He will have to sell a decent piece of Tesla stock to fund it, or a massive loan against it.”