{"id":1446935,"date":"2022-04-20T07:00:42","date_gmt":"2022-04-20T11:00:42","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1446935"},"modified":"2022-04-20T07:00:48","modified_gmt":"2022-04-20T11:00:48","slug":"elon-musk-willing-to-invest-15-billion-of-his-own-money-for-twitter-takeover-seeking-co-investors-for-rest","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/elon-musk-willing-to-invest-15-billion-of-his-own-money-for-twitter-takeover-seeking-co-investors-for-rest\/","title":{"rendered":"Elon Musk Willing to Invest $15 Billion of His Own Money for Twitter Takeover \u2013 Seeking Co-Investors for Rest"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">38<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Felon-musk-willing-to-invest-15-billion-of-his-own-money-for-twitter-takeover-seeking-co-investors-for-rest%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1446935&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><\/div>\n<p>Elon Musk is the richest person in the world, but he\u2019s scrambling to assemble a buyout bid for Twitter using other people\u2019s cash.<\/p>\n<p>The Tesla<br \/>\n        <a data-track-hover=\"QuotePeek\" data-charting-symbol=\"STOCK\/US\/XNAS\/TSLA\" class=\"qt-chip positive\" href=\"https:\/\/www.marketwatch.com\/investing\/stock\/TSLA?mod=MW_story_quote\" target=\"_blank\" rel=\"noopener\">TSLA,<br \/>\n        +2.38%<\/a><br \/>\n       tycoon \u2014 who is worth $270 billion, according to Forbes \u2014 is angling to finance his\u00a0<a href=\"https:\/\/nypost.com\/2022\/04\/14\/elon-musk-offers-to-buy-twitter-for-41-billion\/\" target=\"_blank\" class=\"icon none\" rel=\"nofollow noopener\">$43 billion bid to acquire Twitter<\/a>\u00a0<br \/>\n        <a data-track-hover=\"QuotePeek\" data-charting-symbol=\"STOCK\/US\/XNYS\/TWTR\" class=\"qt-chip negative\" href=\"https:\/\/www.marketwatch.com\/investing\/stock\/TWTR?mod=MW_story_quote\" target=\"_blank\" rel=\"noopener\">TWTR,<br \/>\n        -4.73%<\/a><br \/>\n       in a complex deal that raises debt against both the company and possibly his own stock, as well as a giant cash equity infusion from co-investors, The Post has learned.<\/p>\n<div class=\"paywall\">\n<p>Still, insiders say Musk appears to be facing hurdles in raising the money. In addition to doubts about whether Twitter is worth the $54.20 a share that Musk offered on Thursday, sources said some investors appear skittish over his\u00a0<a href=\"https:\/\/nypost.com\/2022\/04\/16\/elon-is-crazy-like-a-musk-but-hes-facing-federal-heat\/\" target=\"_blank\" class=\"icon none\" rel=\"nofollow noopener\">pattern of unpredictable behavior and taste for controversy<\/a>.<\/p>\n<p>Musk himself is willing to invest between $10 billion and $15 billion of his own cash to take Twitter private, two sources close to the situation said. That\u2019s up from the current 9.1% stake in the company he revealed on April 4, which is worth about $3.4 billion.<\/p>\n<p>Musk may also be willing to borrow against his current stake if necessary, a move that could possibly raise several billion additional dollars, sources said.<\/p>\n<p>\u201cThe co-investors will combined have more equity than Musk but he will be the biggest single holder,\u201d one of the sources said.<\/p>\n<p>Nevertheless, it\u2019s mainly outside financing that will carry the bid for Musk, who has tapped Morgan Stanley<br \/>\n        <a data-track-hover=\"QuotePeek\" data-charting-symbol=\"STOCK\/US\/XNYS\/MS\" class=\"qt-chip positive\" href=\"https:\/\/www.marketwatch.com\/investing\/stock\/MS?mod=MW_story_quote\" target=\"_blank\" rel=\"noopener\">MS,<br \/>\n        +2.81%<\/a><br \/>\n       to raise another $10 billion in debt against Twitter in the manner of a traditional leveraged buyout, the sources said.<\/p>\n<p>As\u00a0<a href=\"https:\/\/nypost.com\/2022\/04\/15\/elon-musk-considers-bringing-in-partners-on-twitter-bid-sources\/\" target=\"_blank\" class=\"icon none\" rel=\"nofollow noopener\">first reported by The Post<\/a>\u00a0on Friday, however, the bulk of the money \u2014 about $20 billion, according to sources \u2014 will come from co-investors who will finance a hostile tender offer directly to Twitter shareholders, sources said. Musk hinted at the hostile approach in a\u00a0<a href=\"https:\/\/nypost.com\/2022\/04\/18\/elon-musk-posts-cryptic-tweet-as-twitter-battle-escalates\/\" target=\"_blank\" class=\"icon none\" rel=\"nofollow noopener\">cryptic tweet over the weekend<\/a>\u00a0that quoted Elvis Presley\u2019s 1956 hit \u201cLove Me Tender.\u201d<\/p>\n<p>Musk is planning to launch the tender offer for Twitter in 10 days or so, sources said. Still, insiders say Musk appears to be having more trouble than expected in finding backers.<\/p>\n<p>According to a source, Musk\u2019s Twitter bid is drawing interest from investors who have poured cash into his prior ventures, including Tesla and SpaceX. On the other hand, sources note that most private equity firms prefer to stay away from political controversies and worry that they will not be able to control Musk, according to a source briefed on the process.<\/p>\n<p>Before disclosing his Twitter stake, Musk immediately began floating unusual ideas for the company including\u00a0<a href=\"https:\/\/nypost.com\/2022\/04\/11\/elon-musk-wants-to-turn-twitter-hq-into-a-homeless-shelter\/\" target=\"_blank\" class=\"icon none\" rel=\"nofollow noopener\">converting Twitter\u2019s San Francisco headquarters into a homeless shelter.<\/a>\u00a0Musk also said Twitter might be \u201cdying,\u201d and even suggested scrapping its business model, which relies on selling ads.<\/p>\n<p>Musk told Twitter\u2019s board the social network \u201chas potential to be the platform for free speech around the globe\u201d \u2014 an approach that has unleashed speculation he would reinstate\u00a0<a href=\"https:\/\/nypost.com\/2022\/04\/14\/trump-says-he-wont-return-to-twitter-if-elon-musk-buys-it\/\" target=\"_blank\" class=\"icon none\" rel=\"nofollow noopener\">Donald Trump\u2019s Twitter account<\/a>, which was shut down following the Jan. 6, 2021, Capitol riot.<\/p>\n<p>\u201cPrivate equity firms don\u2019t get paid for headline risk,\u201d one source told The Post, referring to Musk\u2019s taste for controversy.<\/p>\n<p>Controversies aside, few private equity firms are willing to participate in a hostile bid, and Morgan Stanley is struggling to lure other banks to participate in the cash raise, sources said. Likewise, many appear doubtful whether Twitter is worth $43 billion, according to sources.<\/p>\n<p>That\u2019s despite the fact that Twitter on Friday\u00a0<a href=\"https:\/\/nypost.com\/2022\/04\/15\/twitter-pushes-back-on-elon-musks-takeover-with-poison-pill\/\" target=\"_blank\" class=\"icon none\" rel=\"nofollow noopener\">adopted a so-called \u201cpoison pill\u201d<\/a>\u00a0preventing Musk from acquiring more than 15 percent of the company, signaling that the price was too low.<\/p>\n<p>\u201cA lot of private equity firms are doing the work and struggling on the valuation,\u201d a source said. \u201cThis is not growing like Instagram or TikTok.\u201d<\/p>\n<p>You can only raise $10 billion of bank debt, and then maybe some preferred shares,\u201d another source added, referring to a type of debt that can be converted to stock. \u201cTwitter does not have a whole lot of cash flow.\u201d<\/p>\n<p>Time is tight, as Musk only began to make inquiries about financing a few days before he disclosed his stake, sources said. For his bid to succeed, he would have to win support from holders of a majority of Twitter stock to support a fully financed tender offer made directly to them. Then he could start a proxy contest trying to change the makeup of the board and remove the poison pill.<\/p>\n<p>Twitter\u2019s annual meeting is scheduled for May 25.<\/p>\n<p>Meanwhile, The Post\u00a0<a href=\"https:\/\/nypost.com\/2022\/04\/14\/elon-musk-could-have-competition-thoma-bravo-considers-bid-for-twitter\/\" target=\"_blank\" class=\"icon none\" rel=\"nofollow noopener\">reported last week that private equity firm Thoma Bravo\u00a0<\/a>is exploring its own bid for Twitter, and Thoma Bravo has since reportedly told Twitter about its plans.<\/p>\n<p>A Musk spokesman declined comment.<\/p>\n<p><a href=\"https:\/\/nypost.com\/2022\/04\/19\/elon-musk-scrambles-to-find-backers-for-twitter-takeover-sources\/?mod=mktw\" target=\"_blank\" class=\"icon none\" rel=\"nofollow noopener\">This report originally appeared on NYPost.com.<\/a><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Elon Musk is the richest person in the world, but he\u2019s scrambling to assemble a buyout bid for Twitter using other people\u2019s cash. The Tesla<\/p>\n","protected":false},"author":498,"featured_media":2315279,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1446935","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1446935","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/498"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1446935"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1446935\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1446935"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1446935"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1446935"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}