Elon Musk wants to buy Twitter for around 41 billion US dollars

Following the proportionate purchase of around 9.2 percent of the social media network Twitter, Tesla boss Elon Musk now wants to take over the short message service completely. Around 41 billion US dollars the richest person in the world wants to let himself cost the service, which is to be taken afterwards from the stock exchange.

Elon Musk wants to buy Twitter

As tech billionaire Elon Musk himself shares on Twitter, they have made an offer to the company, referring to a notice from the US Securities and Exchange Commission. This shows that the Tesla boss is now offering all shareholders 54.20 US dollars per share to take over the short message service completely. A total of about 41.4 billion U.S. dollars (the equivalent of about 38 billion euros) is thus in the room.

According to Musk, the takeover would be the only way to enforce free speech, which the billionaire (and around 70 percent of the roughly 2 million participants in his survey) feels is threatened by Twitter.

Twitter fights back with poison pill

Twitter’s board of directors, meanwhile, is less than pleased with the hostile takeover and adopted a plan to strengthen the rights of current shareholders, even in the long run. That reports Tagesschau, citing the company.

The so-called “poison pill” provides that other shareholders can buy additional Twitter shares particularly cheaply if a buyer exceeds the 15 percent mark. This is a frequently used tool by companies threatened by a potential outside takeover.

In addition, there is talk of a control premium that would have to be paid to the remaining shareholders in the event of a large-scale takeover. In the said case of the Twitter takeover, it lets the value of the shares increase above the currently valid market value when purchased by Elon Musk. According to the company, the measures will initially apply for one year.

Musk himself considers such measures “contrary to the interest of shareholders”and is of the opinion that the company thereby violates its fiduciary duty. Meanwhile, just a few days ago, a Twitter shareholder filed a class action lawsuit against Musk in a U.S. federal court in New York. According to the plaintiff, Musk had allegedly delayed the publication of his share purchase in order to be able to buy more shares at a lower price.