Reports say Elon Musk is seeking to raise funds to buy Twitter

Tesla CEO and America’s richest man Elon Musk is stepping up his bid to acquire Twitter.

The musk that suggested Purchasing the platform for $43 billion It was rejected by Twitter’s board of directors last week, and is now said to be seeking funding for the acquisition. Bloomberg News reports that Musk is communicating with partners across Wall Street to find funds for the deal.

Possible funding sources include private equity firm Apollo Global Management or investment bank Morgan Stanley, which is advising Musk on the acquisition, according to Bloomberg and the New York Post.

Musk, who recently became a Twitter account largest shareholderLast week, it suggested the company should go private for $54 a share, above its current share price of about $45. The offer was met with resistance from some investors, and Twitter’s board of directors adopted the so-called poison pill To prevent Musk from controlling the company.

Musk is the richest person in the world, but much of his $260 billion fortune is tied to Tesla shares. Musk will need to liquidate a lot of his holdings to buy Twitter on his own, which could reduce Tesla’s value.

On Tuesday, Musk posted a cryptic tweet indicating that he would try to buy shares directly from shareholders in a bidding offer.

On Wednesday, Musk tweeted “_______ is the night,” apparently referring to Scott Fitzgerald’s novel, “Giving is the night.” Earlier, Musk tweeted a reference to Elvis Presley’s song, “Love Me, Thin.”

A prolific speaker, Musk has more than 82 million Twitter followers on the platform, and has often bickered with critics on the platform. He’s currently fighting a federal blocking order over 2018 tweets in which he suggested he had money to take Tesla private, something that securities regulators later found to be wrong.

Musk also spoke out against what he calls censorship on the social network. This issue was highlighted in his takeover offer letter, with Musk noting his focus on “freedom of speech.”

Musk has now turned to Twitter’s board, saying that if he were responsible it would save $3 million a year by cutting board members’ salaries to zero. He also noted that directors collectively only own a small financial stake in Twitter, which indicates that their “economic interests are simply not aligned with those of shareholders.”

Twitter adopts a “toxic pill” plan to counter Elon Musk’s attempt. But what does this plan mean?


Olaf Groth, a business professor at the University of California, Berkeley, said the proposed acquisition elevates Twitter executives to show that the company is not performing poorly. He said that even the entire social media business model for making money through ads, which Musk questioned, is “up for discussion.”

“Maybe he decided it wasn’t worth it and sent a political signal to apply pressure,” Groth said. “Now all eyes are on Twitter, and the clock is ticking.”

Although Musk said his initial offer was “final,” Musk may have to raise the offer to satisfy other shareholders. A top Twitter contributor, a Saudi prince, mocked the show last week in a tweet. Alwaleed bin Talal said he doesn’t think $43 billion is close to the value of Twitter given its growth prospects.

Twitter shares hit an all-time high of $77.63 in March 2021. On Tuesday, the shares were trading at around $45.

The Associated Press contributed to this report.


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