Elon Musk has been facing financial challenges since closing the $44 billion Twitter acquisition deal. The latest action taken by the billionaire was selling 20 million Tesla shares.
In a bid to rescue Twitter Inc which is struggling as a result of its new policy, Elon Musk is looking for new funds from investors. According to comments from some investors, the billionaire reached them to offer Twitter shares at the price set when taking the company private back in October. according to those familiar with the matter, the head of Musk’s family office Jared Birchall is approaching potential investors to offer the price of $54.20. One of those investors reached was Ross Gerber, president and chief executive at Gerber Kawasaki Wealth & Investment Management.
It seems that new funds are needed as Elon Musk has been facing financial challenges since closing the $44 billion Twitter acquisition deal. Admitting that the platform has suffered a “massive drop in revenue” after campaign groups raised concerns about Twitter content moderation standards, Elon Musk started selling his Tesla Inc (NASDAQ: TSLA) shares to meet his credit obligations
Back in October, Musk closed the acquisition deal with as much as $13 billion in loans from banks as well as a $33.5 billion equity commitment. The latter included Musk’s 9.6% Twitter stake worth $4 billion and $7.1 billion from investors including Oracle Corp co-founder Larry Ellison and Saudi Prince Alwaleed bin Talal. As a result of Musk’s inability to pay the debt, the banks have even discussed the options of softening the terms and replacing the $3 billion of unsecured debt that has an interest rate of 11.75%.
As we reported last week, the latest action taken by Elon Musk was selling 20 million Tesla shares. The funds gained totalled over $3.5 billion. Earlier, in November, Musk sold at least $4 billion worth of Tesla shares. So far, Elon Musk has sold a total of 94,202,321 shares this year at an average price of $243.46 per share. The pre-tax proceeds made up approximately $22.93 billion.
Twitter’s New Posting Policy
Following Elon Musk’s acquisition, Twitter updated its content publishing policy. As per the company’s tweets that disappeared a few hours after being released, it would no longer promote other social media accounts. Besides that, it would not allow posting third-party link aggregators anymore.
“We recognize that many of our users are active on other social media platforms. However, we will no longer allow free promotion of certain social media platforms on Twitter.”
According to Musk, such a solution would prevent “relentless advertising of competitors for free, which is absurd in the extreme.”
Last week, Twitter put some journalists’ accounts on suspension without any specific explanation. They include The New York Times’ Ryan Mac, Mashable’s Matt Binder, MSNBC host Keith Olbermann, Washington Post’s Drew Harwell, Journalist Aaron Rupar, and CNN’s Donie O’Sullivan. It turned out that the accounts banned were tracking the locations of private planes. Notably, some of those journalists who were suspended from Twitter had also covered stories on Musk taking over the bluebird app.
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