The famed group of investors on “Shark Tank” know how to spot a bad deal.
On set, the venture capitalists take pitches from startups and determine whether the business is investable, and act accordingly.
We know the world’s richest man, Elon Musk, recently closed a highly contentious deal: the $44-billion acquisition of micro-blogging platform Twitter.
What Happened: Benzinga asked the Sharks (more specifically, Kevin O’Leary and Mark Cuban) what they think of Musk’s purchase, which just so happens to be the largest leveraged buyout deal of all time.
O'Leary told Benzinga: “[Twitter] was a miserably run company since it first went public. A rotating cast of CEOs sucked billions out in option grants, created no value and shareholders were diluted into oblivion.”
O’Leary — also known as Mr. Wonderful — has invested in dozens of companies through "Shark Tank" and has a sprawling portfolio across private, equity and cryptocurrency investments.
Mr. Wonderful, who has joked about taking anger management classes on “Shark Tank,” continued: “Musk should take out a spatula, scrape the place clean and start from scratch.”
O'Leary will speak at Benzinga's Future of Crypto conference Dec. 7 in New York City.
Read also: Here's Why Kevin O'Leary Is Betting On Elon Musk Coming Out On Top In Twitter Deal
Cuban, owner of the Dallas Mavericks and co-founder of Cost Plus Drugs — which fills and delivers prescriptions for significantly less than a regular pharmacy — said:
“I'm looking forward to the Elon Musk era on Twitter. He is a ready, fire, aim entrepreneur who will truly enjoy f***ing with everyone who has an expectation of him. The only expectation you can have of Elon Musk is that he will flex his independence to show everyone who's in charge.”
The “Shark Tank” investor, who is worth $4.6 billion, continued: “[Twitter is] a unique asset that [Musk] will be able to take public the next time there is an insane bull market. He just needs to grow it profitably and he will make a killing.”
Also read: After $20M Invested In 85 Companies, Here Are Mark Cuban's Worst And Best Shark Tank Investments
Why It Matters: Musk reportedly told prospective investors that he could take the social media giant public again after just a few years, according to The Wall Street Journal.
The Journal said that Musk stated his intention to launch an IPO for Twitter as soon as three years after purchasing the company.
After assuming control of the social media platform late last week, the billionaire has already made drastic changes, including dismissing the entire board of directors, exploring changes to the way material is moderated and planning for a paid verification service.
Kevin O'Leary speaks at the Benzinga Psychedelics Capital Conference in April 2022. Photo by Dez Smith.
