Elon Musk Offers To Buy Twitter — Will Jack Dorsey Approve? How Much Is Twitter Worth?

Elon Musk, CEO and founder of Tesla and SpaceX, is offering to buy Twitter for $41.3 billion (some reports say $43 billion). Musk's decision to buy Twitter comes a little bit unexpected and sudden, as he had just recently declined the offer from Twitter's CEO, Parag Agrawal, to become a board member of the company.

Musk looks like he wants to have a takeover of Twitter. Just recently, the high-profile entrepreneur acquired Twitter stocks for up to 9.2%. However, it looks like Musk wants to own the company.

In an SEC filing on Thursday, Twitter revealed that the company had received a letter from Elon Musk stating that he was proposing to purchase the company's remaining shares. Earlier this week, Musk wrote a letter to Twitter shareholders, offering $54.20 per share of the company's stock, or $41.3 billion, and saying that this was his last offer.

Elon Musk on Twitter

Elon Musk Net Worth is at $278 billion, he has become the richest person in the world with his assets coming mainly from the electric vehicle company Tesla and the private aeronautics company, SpaceX.

According to USA Today, Musk said, "I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy."

In the filing, he then added, "However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company."

CNN reports that Elon Musk's letter about the proposal was not addressed to the CEO, Parag Agrawal, but instead was addressed to the chair of the Twitter board, Bret Taylor. The letter ends with a line saying, "Twitter has extraordinary potential. I will unlock it."

Twitter confirms that they have received Musk's offer. The company stated that they need to carefully deliberate and review the proposal "to determine the course of action that it believes is in the best interest of the company and all Twitter stockholders."

Elon Musk Is Making Moves Leading Towards Buying Twitter

Elon Musk revealed in recent weeks that he had been buying Twitter shares in almost daily batches since January 31. The company is aware of his activities, which prompted the board to quickly offer Musk a seat on the company's board of directors on the condition that he did not own more than 14.9%, as stated in the Securities and Exchange Commission filing.

However, Musk did not disclose how he intended to pay for his acquisition. He stated that he had retained the financial services of Wall Street behemoth Morgan Stanley (MS) to assist him with the transaction.

The Twitter stock price was at $39.31 on April 1. While Twitter stocks have now been volatile, they still resulted in an increase of $46.94 as of today. Elon Musk's offer to buy Twitter begs the question of how much is Twitter worth, according to Market Watch, Twitter Market Cap is now at $36.71B.

Currently, there is still no news about the Twitter board approving this acquisition. The same can be said for Twitter co-founder Jack Dorsey's or CEO Parag Agrawal's opinion on the matter.

Recap of What's Going on with Elon Musk and Twitter

Just recently, the public welcomed the new Twitter shareholder, Elon Musk. The purchase was made public on Tuesday, April 5, which revealed Musk as the largest shareholder, buying Twitter with a 9.2% ownership.

One of Silicon Valley's well-acclaimed names, Jack Dorsey, who happens to be Twitter's co-founder, was happy with the announcement of Musk finally joining Twitter. Dorsey tweeted that he has wanted Musk to be part of the board for a long time now.

Following the news, the new Twitter CEO Agrawal stated that the company is appointing Elon Musk as a member of the board.

The CEO stated, "Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our Board." Agrawal added, "He's both a passionate believer and an intense critic of the service, which is exactly what we need on @Twitter, and in the boardroom, to make us stronger in the long-term."

It looked like all was well. However, Musk later declined the offer to have a seat on the board.