Why did Elon musk just spend billions to own Twitter

There is always one possible reason why Elon Musk bought Twitter. The world’s richest man had spent months trying to buy Twitter for $44 billion and purchase the agreement that he officially signed in April. Why Elon wants to own Twitter, the reasons are so complicated, well there are so many rumors and talk about owning Twitter and what he thinks about advertising.

Why did Elon musk just spend billions to own Twitter
Why did Elon musk just spend billions to own Twitter

Well, he said that the companies that sell advertisement on Twitter, which is how the company makes money, but most of them has been wrong about it. But still, it doesn’t clear how Musk secured all of the financings to close his $44 billion agreement to buy the company and take it private. 

On the other hand, the banks, including Morgan Stanley and Bank of America, sanctioned a loan previously this year of $12.5 billion that Musk needed to buy Twitter and take it private. However, the Investors who would get ownership stakes in Twitter were also expected to chip in billion dollars. Elon Musk’s original slate partners included parties ranging from the billionaire’s tech world friends with like-minded ideas about Twitter’s future like Oracle co-founder Larry Ellison, to funds controlled by Middle Eastern royalty.

Moreover, the Billionaire Saudi Prince said, that his kingdom holding the company rolled over a combined $1.89 billion in existing shares, making them the company’s largest shareholder after Elon. Hence, another investor, the cryptocurrency exchange Binance says that it put in $500 million. 

Hence, the more investors checked out for the deal, the less much Elon Musk would have had to pay on his own. Most of Elon Musk’s wealth is bound in shares of his electric car company. Furthermore, since the month of April 2022, he has sold more than $15 billion worth of Tesla stock, to pay his share.

Related Posts

1 of 279