(Bloomberg) — Elon Musk is in search of new traders for Twitter Inc. at $54.20 a share, the identical value he paid when he took the corporate non-public for $44 billion in October and kicked off a contentious overhaul.
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The managing director of the billionaire’s household workplace, Jared Birchall, has been reaching out to potential backers this week, information web site Semafor reported on Friday. Ross Gerber, who runs Gerber Kawasaki Wealth and Funding Administration and took half within the earlier Twitter buyout, confirmed the outreach.
The fundraising try follows a tumultuous stretch at Twitter, the place Musk has slashed jobs, upended longstanding insurance policies and reinstated banned accounts. Simply this week, the corporate suspended a number of journalists that Musk stated had put his household at risk by revealing location details about his non-public aircraft.
Musk, who additionally runs Tesla Inc. and SpaceX, has acknowledged prior to now that he paid an excessive amount of for Twitter however has expressed confidence in its prospects in the long term.
“Clearly, myself and the opposite traders are clearly overpaying for Twitter proper now,” he stated on a Tesla convention name in October. “The long-term potential for Twitter, in my opinion is, an order of magnitude larger than its present worth.”
Twitter didn’t instantly reply to a request for remark.
A pitch doc saying the brand new funding alternative described it as “a follow-on fairness providing for frequent shares on the authentic value and phrases, focusing on a year-end shut,” based on Semafor. The transfer adopted “quite a few” inbound requests to put money into Twitter, the doc stated.
Gerber stated he plans to verify along with his shoppers — lots of whom have giant positions in Tesla — to gauge their curiosity within the Twitter providing.
Musk agreed to amass Twitter in April however then spent months attempting unsuccessfully to get out of the deal. He has bought Tesla shares to assist finance the acquisition, and that has weighed on the inventory, which is down 57% this 12 months. As of this week, Musk had unloaded virtually $40 billion in Tesla shares.
–With help from Dana Hull.
(Updates with affirmation of outreach in second paragraph.)
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