The Five co-host and Democrat strategist Jessica Tarlow and Sarah Westwood of the Washington Examiner are discussing the acquisition of Elon Musk on Twitter at WSJ at Large.
Elon Musk, who agreed to make Twitter Inc. private in a $ 44 billion deal told potential investors it could return the social media company to public ownership in just a few years.
Elon Musk’s Twitter account is displayed on the iPhone screen in front of the homepage of the Twitter website. (Virtue / Getty Images / Getty Images)
Mr Musk said he planned to launch an initial public offering on Twitter just three years after buying it, according to people familiar with the matter. The deal is expected to close later this year, subject to approval, including approval from Twitter shareholders and regulators, the company said.
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Mr Musk, head of Tesla Inc., is in talks with investors as private equity firms, which could help reduce the $ 21 billion he plans to invest to help pay for the deal. The rest of the money comes from loans. One company considering participation is Apollo Global Management Inc., The Wall Street Journal reported.
Ticker Security Last Modified% TWTR TWITTER INC. 48.84 -0.34 -0.68% TSLA TESLA INC. 909.25 +6.31 + 0.70%
Private equity firms often take private companies in order to fix them out of the limelight and then make them public again within five years or so. Mr. Musk’s signal that he plans to do something like this could help potential investors that he will work quickly to improve Twitter’s business operations and profitability.
ELN MUSK SAYS ON TWITTER: “MAY SEE LIGHT COSTS FOR COMMERCIAL / GOVERNMENT USERS”
He gave little detail about his exact plans for the company, except that he wanted it to be less censored in moderating content. At one point, he said he didn’t care if he made money from the deal. Mr. Musk has a history of missing out on his deadlines and goals at Tesla, the electric car company.
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Although Mr. Musk is the richest man in the world, raising funds for the deal was not a bad feat. After he managed to do so, Twitter’s expected resistance eased and both sides quickly agreed to a deal at its initial bid of $ 54.20 per share.
Write to Cara Lombardo at cara.lombardo@wsj.com and to Eliot Brown at eliot.brown@wsj.com
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