Elon Musk has received a $ 41 billion cash offer on Twitter

Elon Musk speaks at the Automotive World News Congress on January 13, 2015 at the Renaissance Center in Detroit, Michigan. REUTERS / Rebecca Cook / File Photo

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April 14 (Reuters) – Elon Musk has offered to buy Twitter (TWTR.N) For about $ 41 billion in cash, he said the social media company he frequently criticized should go private to see effective changes.

Muskin’s price of $ 54.20 per share, which was revealed in a regulatory filing on Thursday, represents a 38% premium on Twitter, the last trading day before Tesla, ending April 1st. (TSLA.O) More than 9% of the company’s CEOs were publicized.

The billionaire turned down an offer to join the Twitter group earlier this week, after revealing his stake in the company, analysts said his intention to take the company as a group seat would reduce his stake to less than 15%. read more

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“Since I made my investment, I now realize that the company will not grow or serve this social need in its current form. We need to turn Twitter into a private company,” Musk said in a letter to Twitter chairman Brett Taylor.

Musk, who calls himself a free speech freedom fighter, has been critical of the social media site and its policies, and recently conducted a poll on Twitter.

“My offer is my best and ultimate offer, and if it is not accepted, I will have to reconsider my position as a partner,” Musk added.

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A source told Reuters that Twitter would review Musk’s offer in consultation with Goldman Sachs & Co and Wilson Sonsini Goodrich & Rosati.

Shares of the company rose 12% in pre-market trading, while shares of Tesla fell 1%. The total contract value was calculated on the basis of 763.58 million shares outstanding, according to Refinitiv data.

Musk has amassed more than 80 million followers since joining the site in 2009, and has used the platform to make a number of announcements, including mocking Tesla’s private contract, which has plunged him into hot water with regulators.

He has been sued by former Twitter shareholders for allegedly missing a recent run in its share price because he waited too long to release his shares. read more

Adding less users than expected in Twitter in recent months has raised doubts about its growth prospects, as it pursues larger projects such as audio chat rooms and newsletters to end long-term stagnation.

“It will be difficult for other bidders / federations to emerge, and the Twitter board will be forced to accept the bid and / or run the active process of selling Twitter,” Wetbush Securities analyst Daniel Yves wrote in a client note.

“There will be a lot of questions in the coming days about financing, regulating, and balancing Musk’s time (Tesla, SpaceX), but in the end it’s not bidding on Twitter now or in terms of filing,” Ives said.

Musk said Morgan Stanley was the financial adviser for the offer.

“Twitter has extraordinary energy. I’m opening it up,” Musk said in his letter.

Report by Chavi Mehta, Uday Sampath and Greg Romliotis; Editing by Anil de Silva

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