DESPERATION: Elon Musk seeks new Twitter investors with off-the-rails offer
Just two months into his tenure as Twitter CEO, Elon Musk is already reaching for a lifeline. The temperamental and inconsistent social media keyboard warrior is reportedly searching for a new influx of cash into the bluebird app by courting potential investors with a more sour-than-sweet deal.
According to Reuters, the managing director of the Tesla CEO’s family office, Jared Birchall, reached out to those with deep pockets by offering to take their money for the same overpriced per share amount that Musk paid – $54.20.
Musk’s money man reportedly sent an email out to investors, making the offer sound sugary sweet, according to Semafor Business.
“Over recent weeks we’ve received numerous inbound requests to invest in Twitter,” Birchall wrote “Accordingly, we are pleased to announce a follow-on equity offering for common shares at the original price and terms, targeting a year-end close.”
Since taking the helm in October, Musk has managed to scare off both advertisers and users with the type of erratic, and unhinged middle-of-the-night tweets reminiscent of a disgraced ex-President.
Musk has de-platformed popular left-leaning accounts, while re-platforming accounts previously banned for engaging in hate speech and violent rhetoric.
It’s behavior that caused nearly half of the platform’s advertisers to pause spending until a clear direction for the company is determined.
With 90% of Twitter’s revenue coming from big business, this was not a good sign.
“One could argue he has created value or destroyed value at Twitter,” Tesla investor Ross Gerber said. “It’s hard to tell at this point.”
Gerber invested $1 million in Musk’s venture to take control of the bluebird app.
Twitter is currently $13 billion in debt as a result of the deal. That burden has been exacerbated by the new owner’s firing of key oversight departments responsible for insuring the social media company is compliant with privacy and cyber-security protocols — something Musk has all but abandoned completely.
Instead of working to make sure that his most recent acquisition is viable, compliant with the laws in the many countries in which it operates, and profitable, Musk spends his days making business decisions via completely unscientific polls of Twitter trolls and consorting with far-right-wing accounts like Catturd2 and Libs of Tik Tok for advice.
On Wednesday, the controversial businessman shed over $3.5 billion of stock options to keep the company afloat – something he promised not to do just eight months ago.
No further TSLA sales planned after today
— Elon Musk (@elonmusk) April 29, 2022
His move sent Tesla shares on a continued downward spiral — to the anger and annoyance of the EV company’s shareholders.
The same day Musk made yet another stock dump, KoGuan Leo – the company’s third largest investor – accused the attention-seeking narcissist of “abandoning” his chief executive duties.
“An executioner, Tim Cook-like is needed, not Elon,” Leo tweeted.
“Elon abandoned Tesla. Tesla has no working CEO Tesla needs and deserves to have working full-time CE,” he said in another post.
Elon abandoned Tesla and Tesla has no working CEO
Tesla needs and deserves to have working full time CEO
What Tesla BOD should do, do nothing? Elon will find his own successor under BOD independent supervision https://t.co/AJSvij9ncP
— KoGuan Leo (@KoguanLeo) December 14, 2022
Leo currently owns an over 22 million share stake in Tesla, which is worth approximately $3.57 billion.
Since the Twitter takeover, Musk has lost over $100 billion of his own money and was knocked off of his perch as the richest man alive.
Not exactly a good resume when attempting to lure others to throw their money into the already roaring dumpster fire.
So far there are no reports of any takers. No surprise there.
Original reporting by Liz Hoffman and Reed Albergotti at Semafor Business.
Follow Ty Ross on Twitter @cooltxchick
