Tesla and SpaceX CEO Elon Musk continues to draw attention with interesting events. The business person, who bought 9.2 percent of Twitter in the first place and then aspires to all of it, saying that it needs to be transformed, seems unlikely to be able to fulfill his wish, according to the latest developments.
There is a serious effort on the board of directors to prevent Elon Musk from buying Twitter. In fact, considering the strategies such as the poison pill that has been on the agenda recently, the job of a business person is not easy at all. Apart from this, another unimaginable problem arose that made it difficult for Musk to buy the platform.
Elon Musk gears up for Twitter: I won’t give them a dime!
Elon Musk will not pay the board if the offer to buy the Twitter platform is accepted. Here are the details…
Elon Musk’s liquid assets are not enough to buy Twitter
Elon Musk per share after 9.2 percent stake $54.20 He wanted to buy the whole of Twitter at a valuation of $43 billion. However, as we mentioned above, the purchase request was not received very warmly on the Twitter front.
Elon Musk, who lost the title of largest shareholder with Vanguard Group’s increase of its share rate to 10.3 percent last week, does not have enough liquid assets to buy Twitter, according to the latest information. Because, according to a New York University professor, the business person does not have enough liquid assets to buy the platform with an all-cash deal.
Elon Musk is the richest person in the world with a net worth of $269.5 billion, according to Forbes real-time billionaires list. But he keeps most of his fortune in Tesla and SpaceX stocks. Therefore, the value of its current liquid assets is thought to be around $2.95 billion. That’s pretty low compared to the $43 billion he’s been offering.
In short, if Elon Musk’s current offer is accepted, Twitter will have to sell some of its Tesla and SpaceX shares in order to buy it. However, it is worth noting that the real problem here is not the payment, but Twitter opposing the purchase. Of course, the businessman also said that he had a plan B otherwise. We will see this together in the future.
So what do you think about this subject? Do not forget to share your views with us in the comments section or on the SDN Forum.