Elon Musk proposes acquiring Twitter for $43 billion to facilitate its transformation into a private enterprise.

• Elon Musk proposed purchasing Twitter for $54.20 per share, which amounts to approximately $43 billion.
• In a letter to Twitter Chairman Bret Taylor, Musk stated that he invested in Twitter due to its potential to serve as a global platform for free speech, and he believes that free speech is crucial for a functioning democracy.

Elon Musk has proposed to purchase Twitter for $54.20 per share in a recent filing, stating that the company requires transformation as a private entity, just over a week after disclosing a 9.1% stake in the company. Musk's offer values Twitter at approximately $43 billion.

As Musk stated in a letter to Twitter Chairman Bret Taylor and disclosed in a securities filing, he invested in Twitter because he believes it has the potential to be a global platform for free speech and he considers free speech a vital component of a functioning democracy.

On Thursday, Twitter's stock decreased by 1.68%, while Tesla's stock dropped more than 3.6% due to the same news.

Musk believes that the social media platform cannot effectively uphold free speech while also flourishing as a business.

He wrote that he is offering to purchase 100% of Twitter for $54.20 per share in cash, which represents a 54% premium over the day before he began investing in Twitter and a 38% premium over the day before his investment was publicly announced. His offer is final, and if it is not accepted, he would need to reevaluate his position as a shareholder.

Musk tapped Morgan Stanley as a financial advisor, according to the filing.

During a TED2022 talk on Thursday, he stated that he has no intention of acquiring Twitter for financial gain and is uncertain if he will be able to purchase the company.

"I believe that having a highly trusted and broadly inclusive public platform is crucial for the future of civilization, but I don't prioritize economics," Musk stated at TED2022.

During the talk, he stated that he would make an effort to keep as many shareholders as possible for a private company.

Just days after CEO Parag Agrawal alerted investors of potential distractions, new developments have emerged.

Twitter's Board of Directors will evaluate the bid at 10 a.m. to determine the best course of action for the company and its stockholders, as stated in a company statement on Thursday in response to the offer. CNBC's David Faber reported on "Squawk on the Street" that the board will meet to review the proposal.

On April 4, Musk first revealed his stake in the social media giant. However, he later changed his mind and did not end up landing a seat on the company's board of directors.

The CEO publicly criticized the social media giant and polled people on Twitter about whether the company adheres to free speech principles. He also stated that he was considering creating a new social media platform.

Twitter's stock shares have fluctuated in recent weeks due to Musk's updates, but have increased by 6% this year and 18.5% since the beginning of the month.

Here is the letter Musk sent as disclosed in a securities filing:

On Thursday, it was reported that Agrawal informed employees in a staff meeting that the company is considering the offer.