Elon Musk is the richest person in the world, but he’s scrambling to assemble a buyout bid for Twitter using other people’s cash.
The Tesla TSLA tycoon — who is worth $270 billion, according to Forbes — is angling to finance his $43 billion bid to acquire Twitter TWTR in a complex deal that raises debt against both the company and possibly his own stock, as well as a giant cash equity infusion from co-investors, The Post has learned.
Musk may also be willing to borrow against his current stake if necessary, a move that could possibly raise several billion additional dollars, sources said. As first reported by The Post on Friday, however, the bulk of the money — about $20 billion, according to sources — will come from co-investors who will finance a hostile tender offer directly to Twitter shareholders, sources said. Musk hinted at the hostile approach in a cryptic tweet over the weekend that quoted Elvis Presley’s 1956 hit “Love Me Tender.”
Before disclosing his Twitter stake, Musk immediately began floating unusual ideas for the company including converting Twitter’s San Francisco headquarters into a homeless shelter. Musk also said Twitter might be “dying,” and even suggested scrapping its business model, which relies on selling ads. Controversies aside, few private equity firms are willing to participate in a hostile bid, and Morgan Stanley is struggling to lure other banks to participate in the cash raise, sources said. Likewise, many appear doubtful whether Twitter is worth $43 billion, according to sources.
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