The drama around Elon Musk never seems to cease with the latest incident involving Twitter (Nasdaq: TWTR). For many months, he has been critical of the website, and its content moderation policies especially as he is an avowed supporter of free speech.
Last week, he announced that he had bought a 9% stake in the company and was supposed to join the company's Board of Directors. This fell apart very quickly with some speculating that it had to do with his failure to disclose the purchase of his shares in a timely manner.
Now, Musk announced that he was looking to take Twitter private at a valuation of $43 billion which is a little less than 20% above its current price. Upon the news, shares spiked higher but gave back the bulk of these gains for the rest of the trading session.
In a letter to Twitter Chairman Bret Taylor, Musk wrote, "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."
Tesla shares also dropped on the news as some believe Musk may be forced to sell shares to fund the acquisition. He is using Morgan Stanley (NYSE: MS) as a financial advisor and warned that it would be his 'last and best offer'.
Later in an interview, he added that he isn't interested in buying Twitter for monetary reasons and added a curious addendum that he was 'not sure' that he would actually be able to buy Twitter but didn't elaborate further. Some assume that he is implying that the buyout could be rejected as it's far below Twitter's recent high or all-time high.
He did share his vision for Twitter if he did succeed in acquiring it. He believes Twitter should be a 'de facto town square'. Some moderation would be necessary around calls to violence and the laws of the countries in which it operates. But, he seeks a much more open platform than its current iteration which Musk and other conservatives see as the bidding of its liberal-leaning management.
Currently, Twitter's board of directors has adopted a limited duration shareholder rights plan, often referred to a a "poison pill." Under the plan, if any person or group acquires beneficial ownership of at least 15% of the company's outstanding common stock without the board's approval, other shareholders can purchase additional shares at a discount. This move could fend off a pontential hostile takeover.