According to what informed sources say, Elon Musk, at the same time as the users’ protest, the advertisers’ lack of acceptance of the new changes and the debt payment deadline, is looking for Attracting new equity investors for Twitter Is.
Meanwhile, Musk’s CFO Jared Birchall called potential investors this week and offered Twitter shares at the same price of $54.20 that Musk paid to take the company private in October.
In an email to investors, Birchall wrote: “In recent weeks, we have received numerous internal requests to invest in Twitter. Accordingly, we are pleased to announce an equal one-year tender offer for the Company’s common stock at the initial price and terms.
Ross Gerber, a Tesla investor who said he put up less than $1 million in Musk’s initial takeover of Twitter, confirmed Thursday evening that he had been contacted about another $44 billion investment round.
Gerber said he is considering the proposal, but needs a clearer idea of the plan. In his opinion, the speculation that Musk has created value on Twitter or destroyed its value; It’s hard at this point.
It will not be an easy choice for investors to buy shares of Twitter in a situation where its value is rapidly falling. Musk probably has ideas for saving Twitter and cleaning up social media. But the problem is that his time is running out.
Twitter’s financial situation
Twitter borrowed 13 billion dollars to make this deal, which has an annual profit of about 1 billion dollars. That alone is more cash than the social network generated last year. Of course, the problems do not end here and many advertisers have stopped their ads on this platform during this time due to Mask’s approach.
These cases put Musk under more financial pressure. On Wednesday, he sold another $3.6 billion in Tesla stock, possibly putting more stock in Twitter and reducing his debt load. It’s the third time he’s sold Tesla stock since announcing in April that he was done with it.
The report on attracting new investors has been published while Elon Musk and the Twitter social network have faced various challenges in recent months. As you know, this network has been involved in the last few weeks with the problems related to receiving the blue tick by paying and adjusting the extensive force of this social network. In addition, Twitter recently suspended the accounts of several journalists for publishing content against Musk, and this also became a problem for him. Because this action has resulted in the reaction of the United Nations and the European Union may even sanction this social network for this reason.
- You need to register a phone number to buy a blue Twitter subscription
- Twitter deletes 1.5 billion inactive user accounts!