Elon MuskThe company team has come up with potential new investments for Twitter Inc. At the same price as the original deal of $44 billion, according to a shareholder who said he was approached about the offer.
Ross Gerber, president and CEO at Gerber Kawasaki Wealth & Investment Management, said a representative for Mr. Musk contacted him about offering more shares Thursday.
Mr. Gerber said his company has previously set aside less than $1 million to support Mr. Musk take over Twitter, which completed in late October at $54.20 a share.
Semaphore earlier reported the new communication to investors.
Elon Musk has warned of significant financial challenges facing Twitter, the social media company he acquired for $44 billion in October. The Wall Street Journal’s Mark Maurer explains how the company is trying to repair its finances and avoid possible bankruptcy. Photo illustration: Laura Kammerman
Twitter did not immediately respond to a request for comment.
Additional equity investments could potentially dilute Twitter’s existing shareholders. The likely extent of the dilution of recent fundraising efforts could not be immediately determined.
This week, Mr. Musk sold more than $3.5 billion
Tesla company
TSLA -4.72%
stock. This was the second round of sales since Twitter Inc.’s purchase. Mr Musk It sold nearly 22 million Tesla shares over a three-day period that ended Dec. 14, according to a regulatory disclosure made Wednesday.
Mr. Musk’s ownership of Twitter got off to a rocky start. Last month, Musk said Twitter had suffered a “massive drop in revenue” and was losing $4 million a day. is later She pleaded the specter of bankruptcy.
As part of the acquisition, Twitter took on about $13 billion in debt. Analysts estimate that could make the social media company owe more than $1 billion in annual interest payments, compared to about $51 million in 2021.
Mr Musk’s focus on Twitter has angered some Tesla investors as the company tracks its worst annual share price performance ever.
Mr. Gerber said he was reviewing the proposal, but had some questions about how to operate Twitter. Those include how long Musk intends to serve as CEO, and any transition plan, he added.
Last month, Mr. Musk said he expected to be found someone else runs Twitter, Without giving a specific timetable for when the appointment will take place.
Twitter has been in turmoil since Elon Musk took over. To get a sense of what’s going on behind the scenes, The Wall Street Journal spoke with former Tesla and SpaceX employees to better understand how Musk leads the companies. Illustration: Ryan Treves
Mr. Gerber, who is also an investor in Tesla Inc. For the electric car maker Musk runs, he said he wasn’t concerned about Twitter’s performance yet, but said he wanted more outreach. “I think they just need to be clear with everyone about what’s going on. Not just with Twitter, but with Tesla.”
Several Tesla investors, including Gerber, have recently expressed frustration with Musk’s Twitter post. It may be at the expense of the automaker. Tesla stock is down more than 57% this year.
Mr. Musk tweeted on Friday that “Tesla is doing better than ever” and that earlier that day he had passed production progress at the company’s Texas plant.
Write to Alexa Corse at [email protected]
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It appeared in the December 17, 2022, print edition as “Musk Seeks Additional Money for Twitter.”
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