Tech

Twitter jumps 12% in pre-market after Elon Musk offers to buy company at $54.20 a share

Business Insider US
Musk acquired a 9.2% stake in Twitter and wants to make changes as a board member.
Musk acquired a 9.2% stake in Twitter and wants to make changes as a board member.
Jim Watson/AFP via Getty Images
  • Twitter stock jumped 12% in premarket trading on Thursday after Elon Musk offered to buy the company outright.
  • The world's richest person revealed his bid of $54.20 a share in regulatory filings the same day.
  • He told the company's shareholders: "Twitter has extraordinary potential. I will unlock it."
  • For more stories visit Business Insider.

Twitter stock jumped 12% in pre-market trading on Thursday after Elon Musk launched a bid to buy the social media company at $54.20 a share.

The world's richest man revealed his intentions in a regulatory filing Thursday, saying he believes Twitter has untapped potential and that he can transform it as a private company.

The $54.20 price tag represents an 18% premium over Twitter's Wednesday closing price of $45.85. It would value the company at about $43 billion.

It's a 54% premium over the January 28 price, which was the day before the Tesla boss started investing in the company. And it's a 38% premium over April 3's price, the day before Musk's investment was made public.

Twitter stock was up 12.24% to $51.46 in pre-market trading as of 6.44 a.m. ET, putting it on track for a major move at the opening bell. Tesla stock was down 0.96%, meanwhile.

Musk's explained the rationale behind his move in a regulatory filing with the Securities and Exchange.

"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," he said.

"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. As a result, I am offering to buy 100% of Twitter for $54.20 per share in cash."

He told shareholders: "Twitter has extraordinary potential. I will unlock it."

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