Musk says in an interview that he doesn’t see the potential acquisition of Twitter as an opportunity to make money.
Tesla chief Elon Musk in an interview during his “TED Talk” Thursday afternoon. It happens after it became known this morning that he wants to buy Twitter.
– I’m not sure I want to buy Twitter. The intent, Musk says, is to keep as many shareholders as is legal in a private company.
He adds that he can “technically” buy the company.
– I don’t see this as an opportunity to make money, he says.
Musk further says that he believes Twitter should make the algorithm publicly available, and be transparent about what has changed in the state of Twitter.
Interviewer Chris Anderson asks if there is a “Plan B” if the bid is not accepted.
Yes, Musk answers without the need to elaborate.
The company will be taken out of the stock market
In total, Musk’s bid estimates the company at $43 billion, which is just over 375 billion crowns.
The price of $54.20 per share is 54 percent higher than the closing price on January 28, the first time Elon Musk has bought shares on Twitter.
If Musk is allowed to buy all the shares in the company, the plan is to write off the company.
Saudi billionaire prince and Twitter contributor Alwaleed bin Talal, known for the Middle East’s response to investor legend Warren Buffett, refused to hold an offer. The offer “does not come close to the inherent value of the company given the growth prospects,” he wrote.
Will “reconsider” the shareholder’s position
In a letter to Twitter’s board of directors, Musk wrote that if the agreement did not work, because he does not trust management, or believes he can bring about the necessary changes in the public market, “he will have to reconsider his position as a shareholder.”
at the documents Handed over to the US Financial Supervisory Authority, Musk writes that the agreement depends on him obtaining state funding, which he expects to do.
Although Musk is the richest man in the world with an estimated fortune of $260 billion, it is not entirely certain how he will finance the purchase.
– This would be a hostile acquisition, and it would cost a lot. He’ll have to sell a significant portion of Tesla’s stock in order to be able to fund it, analyst Neil Campling at Mirabaud Equity Research tells Bloomberg.
The analyst believes that the alternative is to take out a “huge loan”.
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