Elon Musk, the CEO of Tesla, has offered to acquire Twitter for $43 billion and take the social media business private.
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According to an SEC filing, Musk’s best and final offer was $54.20 per share for 100% of Twitter, and he stated that if his offer was not accepted, he would have to reevaluate his status as a shareholder.
Musk recently revealed that he owns a 9.2% investment in Twitter, although he turned down an opportunity to join the company’s board of directors and has publicly chastised the social media network in tweets.
ELON MUSK FACES SHAREHOLDER LAWSUIT OVER DELAY IN DISCLOSING TWITTER STAKE
Musk added, “I invested in Twitter because I believe it has the potential to be the global platform for free speech, and I believe free speech is a societal need for a functioning democracy.” “However, since making my investment, I’ve come to recognise that the company, in its current form, can neither prosper nor serve this societal necessity.”
“It’s simply not a good investment without the reforms that need to be made,” Musk said of the takeover bid.
Elon Musk faces shareholder lawsuit over delay in disclosing Twitter stake
Musk’s decision has enraged shareholders, who claim he illegally withheld information about his position in the social media business in order to buy additional shares at lower prices.
“I invested in Twitter because I believe it has the potential to be the worldwide platform for free speech, and I believe that free speech is a societal imperative for a functioning democracy,” Musk continued. “However, since making my investment, I’ve realised that the company, in its current form, cannot grow or serve this societal need.”
Musk said of the takeover proposal, “It’s simply not a good investment without the reforms that need to be done.”
Musk is accused of violating a regulatory deadline by which he had to report that he had amassed a stake of at least 5%, according to the complaint filed in federal court in New York.
According to the complaint, Musk didn’t reveal his Twitter holding until he had nearly doubled it to more than 9%.
According to the lawsuit, Musk’s Twitter position had hit a 5 percent threshold by March 14, requiring him to publicly declare his interests under US securities law by March 24. He didn’t reveal the information until April 4th.
Prakash Kumar is passionate News writer at vaultnews.org. He writes about Controversy, Web-Series, Entertainment news and Product Reviews. His all articles are based on intense research and genuine feedbacks. Prakash is also a great contributor at kurrentaffairs.com.