Musk is offering $54.20 per share in cash.
Musk is offering to “acquire all of the outstanding Common Stock of the Issuer not owned by the Reporting Person for all cash consideration valuing the Common Stock at $54.20 per share.”
The proposal was delivered in a letter to Twitter yesterday.
“I would need to reconsider my position as shareholder,” Musk said, if his offer is not accepted.
Over the weekend, Elon Musk confirmed he would not be joining Twitter’s board. The board seat rejection caused concerns among employees, on their monthly “day of rest” on Monday.
Last Monday, Musk revealed that he had a 9.2% stake in Twitter. A day later, he was offered a seat on the board, with CEO Parag Agrawal saying Musk would “bring great value.” The company was so sure Musk would accept that it listed him as a board member on its website.
Agrawal had even organized a Q&A between Musk and employees this week.
Employees, who preferred not to be named, allegedly said workers were “super stressed” and had to work “together to help each other get through the week.”
Under the initial agreement, where he would be a board member, Musk would have been limited to a 14.9% stake in the company.
But now that he is not a board member, he can buy as many shares as he pleases, leaving him open to make an offer for the entire company.
Twitter shares are up over 13 percent pre-market on the news.