The managing director of Musk's family office is seeking new equity investors for Twitter. Musk's money manager, Jared Birchall, reached out to potential investors this week, according to media reports.
The attempt to search for new investors follows a tumultuous stretch at Twitter, where Musk has laid off staff, upended longstanding policies, and reinstated banned accounts.
In his latest action, Musk suspended several journalists that the billionaire said had put his family in danger by revealing location information about his private plane.
In the past, the Tesla Inc and SpaceX CEO acknowledged that he paid too much for Twitter but has expressed confidence in its prospects in the long run.
“Obviously, myself and the other investors are obviously overpaying for Twitter right now," he said on a Tesla conference call in October. “The long-term potential for Twitter, in my view is an order of magnitude greater than its current value".
A pitch document announcing the new investment opportunity described it as “a follow-on equity offering for common shares at the original price and terms, targeting a year-end close," according to Semafor. The move followed “numerous" inbound requests to invest in Twitter, the document said.
Ross Gerber, who runs Gerber Kawasaki Wealth and Investment Management reportedly said he plans to check with his clients — many of whom have large positions in Tesla — to gauge their interest in the Twitter offering.
Musk agreed to acquire Twitter in April but then spent months trying unsuccessfully to get out of the deal.
Musk took the company private for $44 billion in October. He sold Tesla shares to help finance the purchase, and that has weighed on the stock, which is down 57% this year. As of this week, Musk had unloaded almost $40 billion in Tesla shares.
