Elon Musk is aiming to get more investors for Twitter at the original $54.20 per share price, at which he acquired the company for $44 billion.
According to news portal Semafor, Musk’s money manager Jared Birchall has reached out to potential investors, “offering shares of Twitter at the same price, $54.20, that Musk paid to take the company private in October”.
“Over recent weeks we’ve received numerous inbound requests to invest in Twitter,” Birchall wrote to investors in an email seen by Semafor.
“Accordingly, we are pleased to announce a follow-on equity offering for common shares at the original price and terms, targeting a year-end close,” the email read.
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According to the report, Tesla investor Ross Gerber, who said he put less than $1 million in Musk’s original takeover of Twitter, confirmed that he was contacted again about another funding round at the $44 billion valuation.
The move comes at a time when Musk has frightened away advertisers and banned several journalists.
The new Twitter boss suspended accounts of more than half a dozen journalists from outlets including CNN, the New York Times and the Washington Post, following their reporting on an account related to him.
He suspended the accounts of journalists like Donie O’Sullivan from CNN and Drew Harwell from The Washington Post as they covered the “exact real-time location” of Musk.
He had earlier said that any account doxxing real-time location info of anyone will be suspended, as it is a physical safety violation.
Musk has also been offloading Tesla shares, planning to buy or personally pay Twitter’s debt.
Tesla doing better than ever, we don’t control Fed: Musk on heavy losses
As Tesla stocks bleed amid heavy losses, Elon Musk on Saturday blamed the Federal Reserve for the current situation, saying his electric car company is doing better than ever.
Tesla stock has nosedived around 60 per cent since January this year, and traded at $156.80 after hours this week.
When a Twitter follower said that Musk has now erased $600 billion of Tesla wealth and still nothing from the Tesla board of directors which is “wholly unacceptable”, he said Tesla is executing better than ever.
“We don’t control the Federal Reserve. That is the real problem here,” he tweeted.
Musk further said that he just finished his meeting going over Giga Texas production progress.
The falling Tesla shares have hit Musk’s net worth which fell to $174 billion, taking him to the second spot at the world’s richest person’s list, toppled by French fashion and cosmetics magnate Bernard Arnault.
Musk saw his net worth tumble by more than $100 billion in 2022.
This week, he sold over 20 million more Tesla shares worth about $3.5 billion and did not provide any reason for selling more stock in the electric car company.
Since November 2021, Musk has sold more than $39 billion of Tesla shares.
The share sale comes at a time when Tesla investors have raised concerns over Musk’s $44 billion Twitter acquisition, saying his 24/7 involvement with the micro-blogging platform is “detrimental to Tesla”.
According to industry analysts, “the fresh stock sale is Musk’s answer to some of the high interest debt he’s paying on his $44 billion Twitter deal”.
