Elon Musk’s team has been exploring the possibility of raising up to $3 billion to help repay the debt incurred for the acquisition of Twitter. It is said that the equity raise, if successful, could be used to pay down the costly unsecured portion of the debt. Some have speculated that the Tesla boss who borrowed $13 billion to close the Twitter acquisition in October from a syndicate of banks including Morgan Stanley and Bank of America Corp. may be looking to take the company private, similar to his successful buyout of Tesla in 2018 while others believe that he may be looking to merge Twitter with another company, such as his space exploration company, SpaceX.
Despite the Wall Street Journal report, Elon Musk himself took to Twitter to refute the accuracy of the statement. As a high-profile figure, Musk’s involvement with the buyout of Twitter sparked immense public interest and media coverage.
Twitter has struggled financially in recent years, with stagnant user growth and declining ad revenue. However, the social media platform remains one of the most popular and influential in the world, with over 330 million monthly active users.
The possibility of raising up to $3 billion to cover the acquisition debt is a major milestone for Twitter. It remains to be seen whether the sale of new shares will go through and the extent to which the cash raised can be used to repay the debt incurred. In any case, the news has been met with much anticipation and excitement, as it could potentially mark a new and interesting chapter in the story of Elon Musk and Twitter.