While Elon Musk’s massive $44 billion takeover of Twitter may seem like a one-man show, it’s really kind of a suicide squad big tech moguls and financiers coming together in a weird rogue gallery meeting. Not only were Musk’s wealthy personal friends in the mix, but holding companies from Middle Eastern countries and a few wealthy crypto proponents jumped in headfirst. All have Musk’s ear and are looking to steer Twitter one way or the other.
As much as the last week seemed like a migraine dive in one man’s ridiculous, single-minded pursuit to make Twitter profitableit’s also just as likely that Musk is feeling pressure from more than 20 corporations, venture capitalists, banks and at least one Saudi prince who have certain return-on-investment expectations.
But despite their hopes, investors may have already lost. Because Musk spent so much time trying to get out of the Twitter deal, he sent the company’s stock price tumbling and generally lower, not to mention that many of the biggest tech companies haven’t gotten too hot in 2022. That initial $54.20 per share asking price has become a bigger rock to bear over the past few months.
One of the executives of Manhattan Venture Partners, Andrea Walne, admitted to having Business Intern in October, “we’re all trying to get through this,” referring to the Twitter deal. They were particularly unhappy with what they were paying for a business that might look more like a $10 billion or $12 billion business, rather than the $44 billion they expected to be part of. MVP invested $7.1 billion in the Twitter deal.
Alex Spiro, Musk’s attorney, told Insider that “the vast majority of equity investors have been contacted and are all in.” So far, we don’t have a single idea about how many of those who pledged funds are all paid.
With some advertisers seek to cut ties with Twitter, the platform could run out of funds over time. Musk himself remarked that Twitter had “a massive drop in ad revenue” and further blamed “activists” for pressuring advertisers off the platform.
Musk took out nearly $13 billion in loans for his purchase, and he will spend years paying the interest on those loans. Now that Twitter is a private company, these loans and interest payments are deposited like a steaming cow’s slurry in Twitter’s financial books. Bloomberg reported that Musk will have to pay $1 billion on that debt every year for the next few years. In April, the New York Times warned against this exact situation where Musk and Twitter could lose enough publicity that paying off the loans seems like a tougher prospect.
Apart from loans and equity investments, most of the funds came from the richest man in the world himself, about $25 billion, although to this day we still don’t know if there is had more people contributing, according to The New York Times. The billionaire sold Tesla stock and used more stock as collateral for those loans, the past says Filings with the Securities and Exchange Commission.
Bloomberg puts Musks’ total net worth at just under $200 billion. Although his status as the world’s richest man remains intact, he, like most of the world’s ultra-rich, has seen declines. It will be interesting to see how the ongoing Twitter debacle impacts Musk’s wealth. He certainly has the time and the platform to complain about it more than ever.
All the info included in this article is what we know so far. It’s unclear which investors paid off and whether others were shy. We will continue to update this post if more information comes out all the way.
#financiers #helped #create #mess #Twitter