While Elon Musk’s huge $ 44 billion Twitter acquisition might seem like a personal show, it’s really kind of a Suicide squad of great tech moguls and financiers who unite in a strange reunion in a thieves’ gallery. Not only were Musk’s wealthy personal friends in the mix, but holding companies from Middle Eastern nations and some wealthy cryptocurrency advocates jumped first. All of them have Musk’s ear and are trying to lead Twitter in one direction or another.
As much as this past week has seemed like a immersion that causes migraines in one man’s ridiculous and resolute quest to make Twitter profitableMusk is equally likely to feel pressure from more than 20 corporations, venture capital firms, banks and at least one Saudi prince who have certain expectations of a return on investment.
But despite their hopes, investors may have already lost. Because Musk has spent so much time trying to pull out of the deal on Twitter, he has fluctuated and generally made the company’s stock price, not to mention that many of the biggest tech companies haven’t been too hot in 2022. The original $ 54.20 per share asking price has become a bigger rock to bear in recent months.
One of the heads of Manhattan Venture Partners, Andrea Walne, admitted Business Insider in October “we are all trying to get out of it”, referring to the agreement on Twitter. They were particularly unhappy with what they were paying for a company that might have looked more like a $ 10 or $ 12 billion company, rather than the $ 44 billion they expected to support in part. MVP put a known $ 7.1 billion stake in the deal on Twitter.
Alex Spiro, Musk’s attorney, told Insider that “the vast majority of equity investors have been contacted and they are all in. “So far, we don’t have a single idea about how many of those who have pledged funds they are all paid.
With some advertisers try to cut ties with Twitter, the platform may run out of funds over time. Musk himself noted that Twitter had “a huge drop in ad revenue” and further blamed “activists” for lobbying off-platform advertisers.
Musk took nearly $ 13 billion in loans for his purchase and will spend years paying interest on those loans. Now that Twitter is a private company, those loans and interest payments are deposited like a steaming cow pie on Twitter’s financial books. Bloomberg reported that Musk will have to pay $ 1 billion on that debt annually for the next few years. In April, the New York Times warned him this exact situation where Musk and Twitter may be losing enough publicity that loan repayments seem to be a more difficult prospect.
In addition to loans and equity investments, most of the funds came from the same richest man in the world, around $ 25 billion, although to this day we don’t know if there have been more people participating, according to The New York Times. The billionaire sold Tesla stock and used more stock as collateral for these loans, according to the past Deposits of the Securities and Exchange Commission.
Bloomberg estimates Musks’ total net worth just under $ 200 billion. Although his status as the richest man in the world remains intact, he, like most of the world’s ultra-rich, has seen a decline. It will be interesting to see how the ongoing Twitter debacle affects Musk’s wealth. He certainly has the time, and the platform, to complain more than ever.
All information contained in this article is what we know up to this point. It is unclear which investors paid and if others got cold feet. We will continue to update this post if more information comes out along the line.