Musk, who also owns Tesla Inc. and SpaceX, has previously admitted that he overpaid for Twitter but has voiced optimism about the long-term success of the company.
Digital Desk: Elon Musk is looking for new investors for Twitter Inc. at a price of $54.20 per share, which is the same as what he paid when he took the business private for $44 billion in October and started a contentious reorganisation.
This week, according to a report on Friday by the news website Semafor, the managing director of the billionaire's family office, Jared Birchall, has been reaching out to potential backers. The outreach was confirmed by Ross Gerber, the owner of Gerber Kawasaki Wealth and Investment Management and a participant in the initial Twitter takeover.
The fundraising effort comes during a turbulent period at Twitter, where Musk has cut positions, changed established procedures, and allowed previously banned users to reappear.
Just this week, the company suspended a number of journalists that Musk said endangered his family by disclosing the whereabouts of his private plane.
Musk, who also owns Tesla Inc. and SpaceX, has previously admitted that he overpaid for Twitter but has voiced optimism about the long-term success of the company.
On a Tesla conference call in October, he stated, "Obviously, myself and the other investors are obviously overpaying for Twitter right now. "In my opinion, Twitter's long-term potential is orders of magnitude bigger than its current valuation."
A request for comment from Twitter did not immediately receive a response.
According to Semafor, the new investment opportunity was referred to in the pitch document as "a follow-on equity offering for common shares at the original price and circumstances, aiming for a year-end close." According to the letter, "several" demands to invest in Twitter led to the decision.
Gerber stated that he intends to inquire about the Twitter offering with his clients, many of whom have significant interests in Tesla.
In April, Musk agreed to buy Twitter, but he later tried in vain for months to back out of the agreement. He traded Tesla stock to help pay for the purchase, which has hurt the price, which is down 57% this year as a result. This past week, Musk sold about $40 billion worth of Tesla stock.
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