Musk submits $43 billion bid to SEC to take Twitter private, maximizing potential

Tesla founder Elon Musk recently went through a series of events involving joining and then leaving the Twitter board, followed by accusations from Twitter board members for disclosing his ownership stake too late. He has since filed a report with the SEC, planning to acquire Twitter at a valuation of $43.4 billion, offering $54.20 per share.

Musk Faces Collective Lawsuit from Twitter Shareholders for Late Disclosure of Ownership

Elon Musk sparked discussions in the community by disclosing his 9.2% ownership in the social media platform Twitter in early April through SEC filings, but some Twitter shareholders are not pleased.

According to SEC regulations, once an individual acquires 5% of a stock, they are required to notify the SEC within 10 days. However, Musk did not disclose his ownership until early April, despite meeting the acquisition threshold on March 14. The plaintiffs argue that Musk continued to buy Twitter shares during the time he delayed reporting, resulting in a 30% increase in Twitter's stock price upon actual disclosure. By reaching a 9.2% ownership, Musk allegedly saved a significant amount on acquisition costs, which is deemed a violation of securities laws.

In a SEC filing dated 4/13, Musk further elaborated on his "intentions" regarding Twitter. Key points mentioned in the document include:

Musk Firmly Expresses Acquisition Interest

I invested in Twitter because I believe it has the potential to become a global platform for free speech, and I believe that free speech is a social responsibility for a functioning democratic nation.

However, since investing in Twitter, I have come to realize that the company is neither thriving nor meeting this societal need in its current form. Twitter needs to transition into a private company.

Therefore, I am proposing to purchase 100% of Twitter's shares at $54.20 per share in cash, representing a 54% premium over the day before I initially invested in Twitter and a 38% premium over the day before I publicly announced my investment in Twitter. My offer is my best and final offer, and if not accepted, I will reconsider my role as a shareholder.

Twitter has extraordinary potential, and I aim to unlock that potential.

Musk: Without Transformation, Optimization is Difficult

As I stated last weekend, I believe Twitter should go private for the necessary optimizations. After several days of consideration, I have decided to acquire Twitter and take it private.

This is not a threat, but if significant optimizations are needed, it is not a good investment.

If Twitter is not transformed into a private company, optimization cannot be achieved.

Gemini Founders: No Reason for Twitter to Reject This Proposal

The Winklevoss brothers, founders of the prominent U.S. exchange Gemini, have voiced support for Musk's proposal.

Tyler Winklevoss stated, "Musk is fulfilling his manifesto: to acquire Twitter and liberate it as a global platform for free speech. There seems to be no rational or moral argument against it." He believes that the internal opposition to Musk's proposal within Twitter indicates a threat to the platform's freedom of speech.

Cameron Winklevoss added that Twitter is resorting to extreme measures to thwart Musk's proposal, demonstrating a reluctance to abandon its existing censorship framework. Cameron believes this is because Twitter aims to maintain its authoritarian control over speech.

In response to Cameron, Musk stated that if the Twitter board goes against the shareholders' wishes, they would violate their fiduciary duties and significantly undermine the company's credibility.

Mark Cuban: Musk is Playing with the SEC

Mark Cuban, owner of the NBA's Dallas Mavericks, commented that Musk is simply playing with the SEC. He submits documents to the SEC to freely express his intentions, revealing the price at which he wants to buy the company's stock. This behavior is similar to his past remarks about privatizing Tesla, disclosing acquisition prices, causing stock prices to rise, and then selling his shares.