Tesla Motors founder Elon Musk has made an audacious $41 billion takeover bid for social media giant Twitter.
The South African venture capitalists has offered $54.20 per share to existing investors.
That was 38 per cent over market value for the US-based Big Tech behemoth on April 1, the last trading day before Musk's purchase of a 9.2 per cent stake in the corporation for $2.89 billion was announced on April 4.
The billionaire said in a statement that he wanted to make Twitter a "platform for free speech" — but could only "unlock" its "extraordinary potential" as a private equity concern. He also implied that he would sell his existing shares if the offer was not accepted.
"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," Musk 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, a 54% premium over the day before I began investing in Twitter and a 38% premium over the day before my investment was publicly announced," Musk said. "My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder."
That announcement caused Twitter shares to jump in value by 28 per cent. But it also prompted one existing shareholder to sue Musk for failing to disclose the information to investors — causing them to miss the lucrative opportunity to buy up stock beforehand.
Twitter CEO Parag Agrawal said on Sunday that Musk had waived his right to a seat on the Twitter board — which under the company's rules would have limited his shareholding to 14.9 per cent.
Musk had previously criticised Twitter for its policy of censoring some posts and suspending user's accounts — including ex-US president Donald Trump's — for political reasons. He had earlier mooted setting up a rival platform that would enshrine free speech.
Former US weapons inspector Scott Ritter and Brazilian journalist Pepe Escobar are among prominent critics of US government policy who have been banned from Twitter in the past week.