The Wall Street Journal (WSJ) reported on Tuesday, citing sources, that Musk told potential investors that he was considering taking Twitter back as soon as three years following acquiring and taking it private.
Elon Musk, the world’s richest man, reached a $44 billion acquisition agreement with Twitter directors on April 25, and is expected to take it private following the acquisition is completed later this year, but the acquisition still needs to wait for Twitter Shareholders and certain regulatory bodies approved.
Musk has told potential investors that he plans to buy Twitter, sources said.TWTR-US) to re-IPO Twitter within 3 years at the earliest.
Market analysis, Musk’s move may help to convince potential investors that he will actively take action to improve Twitter’s business and profitability.
Musk reported on Monday that he is negotiating financing with private equity firms, hedge funds and wealthy businessmen to find financing partners for the acquisition of Twitter. The negotiating targets include private equity firms such as Apollo Global Management and Ares Management, and large institutions such as Fidelity.
The new financing, which is rumored to be in the form of special or common stock, is expected to reduce Musk’s pledged $21 billion in cash contributions, as well as his margin loans backed by Tesla stock.
However, Musk recently said that he doesn’t care whether Twitter makes money or not, but whether Twitter can become a “bastion of free speech”, which may deter potential investors.
