Tesla CEO, Elon Musk, who recently became the single largest shareholder in the social media company, Twitter, has now offered to buy out Twitter stock, CNBC reported.
Update - Musk confirmed that he had a "Plan B" in case his current offer to buy all of Twitter was rejected, when asked by TED's Chris Anderson during the TED2022 event, according to a subsequent CNBC report. In reply, the billionaire and largest Twitter shareholder said: "there is."
But Musk refused to elaborate what his Plan B entails.
A prolific user of the social media platform, Musk has been toying with the idea to own Twitter for a while. Our previous coverage reported that Musk began buying shares of the company as early as January this year and has been on a buying spree almost every trading day ever since.
Declining to join the board
While it looked likely that Musk would join the board of directors of the company and steer its future, his decision to decline this offer, raised questions if Musk was looking to go beyond the 14.9 percent stake he could potentially own, had he been on Twitter's board.
Now in a letter to the Twitter chairman, Bret Taylor, which was also shared in a securities filing, Musk has said that the social media platform has "extraordinary potential" that he can unlock. However, this cannot be done in the company's current form and Twitter needs to go private once again.
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To do so, Musk has made his "best and final offer" of $54.2 a share, which is a 54 percent premium over the price, Musk first began buying Twitter shares. Twitter stock has seen quite a few ups and downs since's Musk involvement with the company has been publicly declared and the Twitter stock rose 13 percent again after Musk's offer became public.
According to Bloomberg, Twitter is currently valued at $37 billion and Musk has offered $43 billion to take the company private. In an SEC filing, tweeted by the Tesla CEO, Musk has also said that if Twitter fails to accept his offer, he will have to reconsider his position as a shareholder since he does not have the "confidence in the management."
Although Musk clarified that this was not a threat, Musk offloading shares in the company would likely drop its stock price sharply.
Bubbling with ideas
Times are tough for Twitter ahead.
Just a few days ago, the company was eager to have Musk onboard and chart a new future for itself. With Musk, initiating a hostile takeover, it needs to now contemplate how to avoid these distractions while also not losing ground to platforms such as Facebook and Instagram, which are reinventing themselves for the future.
Meanwhile, Musk has been bubbling with ideas for changes that can be made at the company and even tweeted about them in the recent past. From revenue streams to Twitter HQ office space, Musk has an opinion about everything that happens at Twitter and how it needs to change.
With over $260 billion of personal worth, Musk has all the money in the world to take over the platform, which he spends most of his time on anyways.
The question is, can Twitter handle a personality like Musk being in charge of affairs? If it refuses, can it handle the backlash?
This was a developing story and updated regularly.