Elon Musk is looking to bring in new investors for Twitter Inc at US$54.20 per share, the same amount he paid in October when he took the business private for US$44 billion and began a divisive revamp. Semafor reported on Friday that Jared Birchall, managing director of the billionaire’s family office, had been reaching out to possible investors this week (Dec 16). Gerber Kawasaki Wealth and Investment Management CEO and early Twitter investor Ross Gerber have verified the contact.
The move to raise capital comes after a period of upheaval at Twitter, during which Musk eliminated positions, upended established procedures, and unbanned users. This week, the business terminated numerous reporters whom Musk said had endangered his family by disclosing the whereabouts of his personal jet.
Musk, who also heads both Tesla Inc and SpaceX, has admitted that he overpaid for Twitter but remains optimistic about the company’s future. On an October conference call for Tesla, he said, “Obviously, myself and the other investors are obviously overpaying for Twitter right now.” According to me, Twitter’s future potential is far higher than the stock’s present price.
A statement from Twitter was requested but went unanswered at first. Investors were promised “a follow-on equity offering for common shares at the original price and circumstances, aiming a year-end closure,” as stated in the pitch paper, according to Semafor. The paper said that the decision was made after receiving “many” requests to invest in Twitter.
To determine the level of interest in Twitter’s offering, Gerber wants to poll his clientele, many of whom have sizable Tesla stakes. After first agreeing in April to purchase Twitter, Musk has spent the subsequent months desperately attempting to back out of the purchase. He has used proceeds from the sale of Tesla shares to help fund the acquisition, which has contributed to the stock’s 57% decline this year. This week, Musk sold about US$40 billion worth of Tesla stock.
For the same US$54.20 per share that Elon Musk paid in October when he took the company private for US$44 billion and launched a controversial makeover, he is trying to bring in new investors for Twitter Inc. The managing director of the billionaire’s family office, Jared Birchall, reportedly reached out to potential investors this week, as reported by Semafor on Friday (Dec 16).
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