It was announced last night that Ilan Musk and the Twitter board have reached an agreement to put the social network in a contract worth $ 44 billion Own the richest person in the world. Mask is set to raise $ 21 billion of that figure himself, but the big question is how will he provide such a hefty figure?
Due to the enormous wealth $ 257 billion Ilan Mask, it will not be difficult to raise the money needed to buy Twitter. But it has not yet been announced exactly how the money will reach Twitter and its shareholders. Mask personally approx $ 3 billion in cash And has some liquid assets. Therefore, to provide the rest of this amount, he is faced with several options.
Get help from other investors
One way for the CEO of Tesla is to reach out to investors who are willing to accompany him. These people can be current Twitter investors or brand new faces. “My goal is to follow the law as much as possible,” he said earlier in the day at a TED conference about buying Twitter. The largest number of shareholders “I will keep it possible.”
The important point is that private companies in the United States can not do more than 2000 shareholder So many investors will not be able to work with Mask. But major shareholders like Jack Dorsey, The co-founders of Twitter, probably maintain their assets in the company with the trust they have in Ilan Mask. Dorsey shares on Twitter approx $ 1 billion It is worth it.
On the other hand, Musk said at the TED event that he did not care about Twitter’s economic situation, and that this statement could deter many potential investors.
Sale of shares
Mask’s largest asset is a stake in Tesla. He continues to pay off the $ 12.5 billion loan he receives to buy Twitter. $ 21.6 billion Shares will have no obligation. This figure can be used to buy Twitter after tax.
Of course, this strategy has its own risks. For example, shareholder concerns about the sale of part of Mask shares in Tesla have already affected the company’s stock price. Price Tesla shares Today (April 26) approx 8 percent It is lower than the beginning of this month.
It is also possible to sell shares in other companies, including SpaceX and Boring Company, but given their low liquidity, this seems unlikely.
Cash and cryptocurrencies of Ilan Mask
Ilan Mask’s $ 3 billion cash mentioned at the beginning of this article is based on calculations Bloomberg Billionaires Index Obtained that may not be accurate. Tesla CEO’s cash figure is calculated based on information provided in stock trading reports and various news, but little information about Personal assets Masks available.
If the personal assets of the richest man in the world are ahead of market growth, Mask will be richer than Bloomberg estimates, and may be able to raise that $ 21 billion figure. Mask had said in July that Bitcoin، Ether And Dodge Quinn has it. But we do not know how much he bought from each of these cryptocurrencies.
Bitcoin and Ether from the beginning of March 2020, respectively 720 And 2600 percent Have grown. This is much more than the 90% increase in the S & P500 index. On the other hand, Dodge Quinn, despite its many ups and downs, is following the news of the purchase of Twitter 30 percent Grew and could have added to Mask’s assets.