In his latest tweet, Pat Sajak tackled the latest Elon Musk news. “Sold a bunch of vowels I’d be stockpiling. Willing to throw in with Elon Musk if the extra dough would help.”
According to Outsider, Elon Musk reportedly offered to buy Twitter for $41.4 billion. He also said he wants to take the social media platform private. “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.”
Elon Musk then revealed he is looking offering to buy 100% of Twitter for $54.20 per share in cash. This is a 54% premium over the day before he began investing in Twitter earlier this month. It is also a 38% premium over the day before his investment was publicly announced. “My offer is my best and final offer. And if it is not accepted, I would need to reconsider my position as a shareholder.”
Elon Musk also wrote that since making his investment he realizes the company will neither thrive nor serve a societal imperative in its current form. “Twitter needs to be transformed as a private company.”
Meanwhile, after Elon Musk made his announcement, Twitter shares jumped 12% in the after-hours trading. Prior to his mission to purchase Twitter, Musk had purchased a 9.2% stake in the social media platform. This makes him the largest shareholder.
Elon Musk Seeking to Purchase Twitter Just As One of the Other Social Media’s Shareholders Files a Lawsuit Against Him
Meanwhile, Outsider reports that another Twitter shareholder is looking to sue Elon Musk over shares dispute. The shareholder, Marc Bain Rosella, claims in his suit that Musk made “materially false and misleading statements and omissions by failing to discover to investors” his growing ownership stake in Twitter.
The suit also claims that Elon Musk announced his investment long after he exceeded the threshold for public reporting. The U.S. Securities and Exchange Commission (SEC) rules do demand that public reporting of acquisitions by private investors above the five percent equity mark. Rasella declares in his lawsuit that musk actually began acquiring shares of Twitter in January 2022. Although that was in his right to do so, he met the five percent threshold of ownership. And he met that threshold long before he announced it publicly in April 2022.
Due to the plaintiff suing Elon Musk in a class-action lawsuit, it is noted that any investor of Twitter may also join as a plaintiff. If a judge finds in favor of the plaintiff, this means Musk did surpass the five percent threshold sometime before reporting the shares publicly. This notably caused a spike in price. This means investors who sold their shares of the company between the time the billionaire surpassed the five percent threshold and when he made the news publicly, have missed a significant increase in price.