"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 says in the filing. "However, since making my investment I now realise the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company."
The buyout offer from Musk is just the latest development in his relationship with Twitter. The billionaire revealed in regulatory filings over recent weeks that he'd been buying shares in almost daily batches starting January 31. Only Vanguard Group's suite of mutual funds and ETFs controls more Twitter shares.
Musk has been a vocal critic of of Twitter in recent weeks, mostly over his belief that it falls short on free speech principles. The social media platform has angered followers of Donald Trump and other far-right political figures who've had their accounts suspended for violating its content standards on violence, hate or harmful misinformation. Musk also has a history of his own tweets causing legal problems.
Musk said last week that he informed Twitter he wouldn't be joining its board of directors five days after he was invited. He didn't explain why, but the decision coincided with a barrage of now-deleted tweets from Musk proposing major changes to the company, such as dropping ads — its chief source of revenue — and transforming its San Francisco headquarters into a homeless shelter. Musk left a few clues on Twitter about his thinking, such as by "liking" a tweet that summarised the events as Musk going from "largest shareholder for Free Speech" to being "told to play nice and not speak freely."
After Musk announced his stake, Twitter quickly gave Musk a seat on its board on the condition that he not own more than 14.9 per cent of the company's outstanding stock, according to a filing. But Musk backed out of the deal.
Musk's 81 million Twitter followers make him one of the most popular figures on the platform, rivalling pop stars like Ariana Grande and Lady Gaga. But his prolific tweeting has sometimes gotten him into trouble with the SEC and others.
Musk and Tesla in 2018 agreed to pay US$40 million in civil fines and for Musk to have his tweets approved by a corporate lawyer after he tweeted about having the money to take Tesla private at US$420 per share.
That didn't happen but the tweet caused Tesla's stock price to jump. Musk's latest trouble with the SEC could be his delay in notifying regulators of his growing stake in Twitter.
Musk has described himself as a "free speech absolutist" and has said he doesn't think Twitter is living up to free speech principles — an opinion shared by followers of Donald Trump and a number of other right-wing political figures who've had their accounts suspended for violating Twitter content rules.
Shares of Twitter jumped 11 per cent before the market open. The stock is still down from its 52-week high of about US$73. Shares of Tesla, the electric vehicle manufacturer that Musk heads, slipped about 0.9 per cent.
