Elon Musk made an offer to buy Twitter (ticker: TWTR) for $54.20 a share in cash, according to a released 13D filling.
Recently, the billionaire founder of Tesla, Musk, had taken a 9.2% stake in Twitter which made the biggest shareholder. Musk released a letter to the Twitter board, saying that was his “best and final” offer. Twitter said it would review the offer.
Twitter shares jumped 10.4% in premarket trading Thursday to $50.60 on the back of this recent bit of news.
The Securities and Exchange Commission filing from Musk reported on April 13 that a letter was delivered to Twitter that contained “a non-binding proposal” to acquire the remaining outstanding common stock.
“This represents a 54% premium over the closing price…on January 28, 2022,” it said. That was released on the last trading day before Musk began investing in Twitter.
The filing said that the offer is a “38% premium over the closing price” of Twitter on April 1. This news marks the latest plot twist in an extremely complicated play that saw Musk publicly assert his power by publicly pushing for changes to Twitter in recent months.
After publicly asking that Twitter get an ‘edit’ button, it became apparent that the billionaire had taken a stake in the social media giant. He made the disclosure using a 13G form for investors planning to hold stock passively.
Musk was then forced to refile the disclosure using a 13D form meant to reflect his intention to be a more active investor. Around this time, Twitter CEO Parag Agrawal tweeted his intentions to get Musk on Twitter’s board.
“I’m excited to share that we’re appointing @elonmusk to our board! Through conversations with Elon in recent weeks, it became clear to us that he would add great value to our board,” Argawal tweeted.
However, this changed over the weekend when Agrawal tweeted that Elon Musk had declined the opportunity to join the board, saying, “I believe this is for the best.”