Elon Musk is the richest person in the world, but he’s scrambling to assemble a buyout bid for Twitter using other people’s cash.
The Tesla TSLA tycoon — who is worth $270 billion, according to Forbes — is angling to finance his $43 billion bid to acquire Twitter TWTR in a complex deal that raises debt against both the company and possibly his own stock, as well as a giant cash equity infusion from co-investors, The Post has learned.
Musk may also be willing to borrow against his current stake if necessary, a move that could possibly raise several billion additional dollars, sources said. As first reported by The Post on Friday, however, the bulk of the money — about $20 billion, according to sources — will come from co-investors who will finance a hostile tender offer directly to Twitter shareholders, sources said. Musk hinted at the hostile approach in a cryptic tweet over the weekend that quoted Elvis Presley’s 1956 hit “Love Me Tender.”
Before disclosing his Twitter stake, Musk immediately began floating unusual ideas for the company including converting Twitter’s San Francisco headquarters into a homeless shelter. Musk also said Twitter might be “dying,” and even suggested scrapping its business model, which relies on selling ads. Controversies aside, few private equity firms are willing to participate in a hostile bid, and Morgan Stanley is struggling to lure other banks to participate in the cash raise, sources said. Likewise, many appear doubtful whether Twitter is worth $43 billion, according to sources.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Elon Musk and Twitter are making weed jokes in federal filingsInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Leer más »
What Elon Musk Would Do With TwitterElon Musk, a self-described “free-speech absolutist,” said that Twitter is the “de facto town square,” and that “it’s very important for there to be an inclusive arena for free speech.” Here's what else he has planned.
Leer más »
Twitter Shares Rise As Elon Musk & Jack Dorsey Slam Board Amid Speculation On Rival BidsTwitter stock popped higher Monday, heading closer to Elon Musk’s $54.20-per-share offer, as he bad-mouthed the company’s board amid rumors of other possible bids. The shares rose nearly 7.5% to cl…
Leer más »
To Capture Twitter, Elon Musk Showcases New Type Of Takeover WarfareThe billionaire is waging a highly public attack against the company, weaponizing its own platform against it. His campaign defies many of the conventions around buyout battles.
Leer más »