- Elon Musk is seeking to raise as much as $3 billion, in keeping with a Wall Street Journal report.
- It might go toward paying down a number of the dearer debt he took on to purchase Twitter.
- In a tweet asking Musk if the reported fundraising attempt was accurate, the Twitter CEO wrote: “No.”
Elon Musk is seeking to line up as much as $3 billion to repay a part of the $13 billion loan package he used to accumulate Twitter last 12 months, in keeping with the Wall Street Journal.
Per the Journal, the Twitter CEO was in talks with potential backers about selling $3 billion in latest shares of the corporate in December, people aware of the matter said. The brand new fund raise may very well be use to pay down the best cost, unsecured portion of Twitter’s $13 billion debt package.
Based on the report, Musk and his advisers were trying to lift the cash on the takeover price of $54.20 per share by the top of last 12 months, though prospective investors weren’t interested attributable to Twitter’s financial condition.
An account tweeted at Musk after the Wall Street Journal report was published on Wednesday, asking if the story was “accurate.”
In response, Musk tweeted “No.”
—Elon Musk (@elonmusk) January 25, 2023
Fresh money could provide some relief amid struggles to maintain advertisers on the platform. Musk previously said that bankruptcy was a possibility during an all-hands meeting in November. Twitter also suffered a “massive drop in revenue” that followed an exodus of advertisers.
The Journal reported at the top of last 12 months that attempts to carry onto advertisers delay by Musk’s revamp of the positioning weren’t going well. The report said that about 70% of the largest spenders before Musk’s takeover were now not spending ad money on the positioning as of the week ending December 18. Promoting accounted for about 90% of Twitter’s revenue in 2021.
“I now think that Twitter will, actually, be OK next 12 months,” the billionaire CEO said after implementing a spread of cost cutting measure, which included a round of widespread layoffs in December.