(Bloomberg) — Elon Musk is looking for new traders for Twitter Inc. at $54.20 a share, the identical value he paid when he took the corporate non-public for $44 billion in October and kicked off a contentious overhaul.
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The managing director of the billionaire’s household workplace, Jared Birchall, has been reaching out to potential backers this week, information web site Semafor reported on Friday. Ross Gerber, who runs Gerber Kawasaki Wealth and Funding Administration and took half within the earlier Twitter buyout, confirmed the outreach.
The fundraising try follows a tumultuous stretch at Twitter, the place Musk has slashed jobs, upended longstanding insurance policies and reinstated banned accounts. Simply this week, the corporate suspended a number of journalists that Musk mentioned had put his household at risk by revealing location details about his non-public airplane.
Musk, who additionally runs Tesla Inc. and SpaceX, has acknowledged previously that he paid an excessive amount of for Twitter however has expressed confidence in its prospects in the long term.
“Clearly, myself and the opposite traders are clearly overpaying for Twitter proper now,” he mentioned on a Tesla convention name in October. “The long-term potential for Twitter, in my opinion is, an order of magnitude larger than its present worth.”
Twitter didn’t instantly reply to a request for remark.
A pitch doc saying the brand new funding alternative described it as “a follow-on fairness providing for frequent shares on the authentic value and phrases, concentrating on a year-end shut,” in keeping with Semafor. The transfer adopted “quite a few” inbound requests to spend money on Twitter, the doc mentioned.
Gerber mentioned he plans to verify together with his shoppers — a lot of whom have massive positions in Tesla — to gauge their curiosity within the Twitter providing.
Musk agreed to amass Twitter in April however then spent months making an attempt unsuccessfully to get out of the deal. He has bought Tesla shares to assist finance the acquisition, and that has weighed on the inventory, which is down 57% this yr. As of this week, Musk had unloaded virtually $40 billion in Tesla shares.
–With help from Dana Hull.
(Updates with affirmation of outreach in second paragraph.)
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