Elon Musk, CEO of Tesla and SpaceX, the world’s richest man, has made a shocking offer to buy social media Twitter for $43 billion.
The decision came after a confusion, such as announcing his participation in the board of directors and reversing it after it was belatedly revealed that Musk bought a 9.2% stake in Twitter on the 4th (local time).
The U.S. Securities and Exchange Commission (SEC) announced on the 4th that Musk bought about 73.5 million shares (92%) of Twitter shares on the 14th of last month. It was interpreted that Musk, who criticized Twitter for freedom of expression, hinted at participation in Twitter management.
Musk accepted Twitter’s offer to join the board the next day, but suddenly reversed it on the 10th and refused to join the board.Rumors have circulated in the market that Musk will take over management rights by increasing his stake in Twitter further. If Musk takes over as a Twitter director, he will not be able to hold more than 14.9% of Twitter’s stake for two years in office, but there is no need to be bound by these conditions as he declined to serve as a director.
Musk was also sued by shareholders for violating the Twitter share acquisition disclosure. Under the U.S. Securities Act, if a company acquires a 5% or more stake in a company, it must be disclosed within 10 days, but Musk announced it late on the 11th.
Musk has expressed his intention to participate in the management by revealing his plan for Twitter reorganization. On the 9th, Musk suggested ways to improve the premium subscription service “Twitter Blue,” abolish advertisements, and add Dogecoin payment options. At the same time, he also proposed to transform Twitter headquarters in San Francisco into a homeless shelter
