Technology

Elon Musk would invest $15 billion of his cash to buy Twitter

After Twitter’s board activated the poison pill to block a hostile takeover bid, Elon Musk works on his plan B. According to the most recent rumours, the tycoon would be willing to invest $10 billion to $15 billion of its own cash in order to buy the company.

Two sources confided to The New York Post that Elon Musk will open the wallet and will offer more than four times the value of its shares on Twitter. The Tesla CEO is considering multiple avenues to raise capital, such as leaning on co-investors or borrowing against his current holding.

Although Musk could get billions of dollars to bid, the report indicates that some investors remain on the sidelines. The impulsive behavior of the founder of SpaceX and the political controversy that surrounds it is enough for private equity firms not to get involved in the operation.

Morgan Stanley, which lent Elon Musk $10 billion in debt against his shares, would have trouble attracting other banks to participate. Despite that, Elon Musk would get the support of several private equity firms who already invested in Tesla and SpaceX.

The man with the most money in the world will present your offer in 10 days. After analyzing his latest tweets, some believe that will appeal directly to Twitter shareholders. Elon Musk believes that the approval should be the responsibility of the shareholders and not the board of directors.

The love me tender what public Saturday anticipates a takeover bid. If it is attractive enough, shareholders would pressure the board to remove the poison pill.

Elon Musk believes that the interests of the board are not aligned with those of the shareholders

Elon Musk is not the only one who thinks that the twitter board is a mess. Jack Dorsey, co-founder of the social network, said the board has always been the dysfunction of the company. Dorsey, who owns 2.2% of the company and has a seat on the board of directors, appears to be against the decision to block Musk’s offer.

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