If Elon Musk’s unsolicited offer of $43 billion to buy Twitter is accepted, funds controlled by Malvern-based Vanguard could gain more than $770 million in value, write Ryan Sharrow and Holden Wilen for the Philadelphia Business Journal.
The Tesla and SpaceX CEO and world’s richest person offered to buy the social media platform on Thursday for $54.20 per share in cash.
The potential deal would be a boon for Vanguard’s mutual funds that own Twitter shares, as the offer represents an 18 percent premium from Wednesday’s closing price of $45.85.
In a letter to Twitter Chairman Bret Taylor, Musk said that his offer represents a 54 percent premium over the day before he started investing in Twitter.
Vanguard funds collectively own around 70.4 million shares of the platform as of Dec. 31. The investment behemoth valued its stake at $43.22 per share at the time, or $3.04 billion in total. The takeover offer values Vanguard’s stake at $3.81 billion.
With a 9.2 percent stake in Twitter as of last year, Vanguard is the company’s largest institutional shareholder.
Read more about the takeover bid in the Philadelphia Business Journal.