Entrepreneur Elon Musk is considering financing the acquisition of Twitter with his own money, according to reports.
Elon Musk ‘s attempts to buy Twitter continue to accumulate, after the controversial offer of 43 billion dollars for 100% of the company’s shares. After the board of directors decided to limit the purchase of shares – a strategy known as the “poison pill” in the stock market -, Musk has continued to seek to finance this acquisition and, according to reports, would be evaluating investing between 10 and 15 billion of its own resources to achieve it.
The billionaire, first on the Forbes list with a network valued at 275 billion dollars, would be willing to cover the operation with part of his money and “borrow” co-investors to achieve the proposed amount. New York Post sources mention that Musk’s personal investment far exceeds the purchase of 9.2% of shares a week ago.
“The combined co-investors will have more capital than Musk, but he will be the largest individual holder, ” one of the sources told the outlet. In addition, it is mentioned that Musk would have held talks with the multinational Morgan Stanley to raise another US $ 10 billion.
If this fund materializes, valued at 20 billion dollars according to Post sources, the largest amount of money will come from investors willing to finance this public offer. However, Musk will be the main economic support of this transaction.
Old acquaintances of Elon Musk
A large part of these investors that will support Musk’s proposal are companies that have already participated in projects by the South African businessman, such as Tesla and SpaceX. This does not detract from the natural concerns about giving Elon absolute power at the head of Twitter and the low level of pressure that these companies could apply to the CEO of Neuralink in an eventual takeover of the social network’s board of directors.
Despite Musk’s convening ability to convince investors, the media maintains that Morgan Stanley has been negotiating strongly with banks to participate in the increase in cash necessary for an efficient coverage of the proposal, especially since many companies do not want to be related to the Musk’s political stances.