Elon Musk takes over Twitter

When I saw this thread near the top, I thought it was going to be about his financing.

There are reports that he's talking to big private equity firms and some large existing Twitter shareholders to see if they will take preferred stock with a fixed dividend to help him finance the purchase so he doesn't have to come up with so much money himself. Names I heard were Apollo and Ares, and he has supposedly hit up Jack Dorsey and Fidelity for what they own.

I hope none of them bail him out of biting off more than he could chew, but I imagine it will depend on how big a dividend they can get.

 

https://www.cnbc.com/2022/05/05/ora...illion-to-fund-musks-purchase-of-twitter.html

The odds of him getting this done are rising. He is lining up financing, some of it by getting existing Twitter shareholders to roll their stakes over rather than cash out. The filing also shows that the size of the margin loan against his Tesla stock is going to be half of what he originally said, so he needs to come up with more financing. Supposedly he is still talking to other current shareholders and some PE firms.

If the odds were say at 70 or 80 percent, it's probably up to 90 percent with the help he is finding. It also means that even though he is going to be the majority owner of Twitter, others including the Saudis (and I am wondering if this is going to get jumped on by people) will be part owners too.

 

They aren't giving him something because he asked, like he's the Lollipop King.

He's offering people insanely good terms that put a lot of the risk on him and what will be his stake in the company, in order to get them to take preferred stock in a private Twitter rather than cashing out.

Nobody said Elon Musk is going to run out of money except you, he's an insanely wealthy guy. But if (more like when) his net worth takes a massive hit, it's going to be because almost of all that wealth is on paper in a public company that is very, very overvalued. His personal stake in Twitter after this closes is just going to trade in some of that overvalued equity for overvalued equity in Twitter. So he's no worse for the wear YET. When he will be hurting is when the bubble that has Tesla trading at a crazy multiple pops -- and what we are already seeing is like 2nd inning of this. It will be that much worse for him personally than it was going to be because of the loan he is taking, which collateralizes some of that stock.