The social media platform reportedly saw major advertiser exits over Musk’s tweet policies
© AFP / Jim Watson
Elon Musk’s family office, which owns and runs Twitter, is currently searching for fresh investments, according to the news site Semafor, citing two sources familiar with the issue. It follows media reports about latest exodus of advertisers and a heavy debt burden of the social media giant.
Jared Birchall, the managing director of the company’s family office, is reportedly seeking new investors for Twitter, in an attempt to make the social network financially viable.
The fundraising effort was confirmed by Ross Gerber, president and CEO at Gerber Kawasaki Wealth & Investment Management, in response to a Reuters request. Gerber, who’d taken part in the earlier Twitter buyout, said that he was contacted by a Musk representative about offering more shares at $54.20 – the same price Musk paid to take the company private in October.
The social media company has recently seen a massive advertisers outflow due to a stream of controversy centered on the issue of management of the platform under Musk’s ownership.
The exodus has inevitably hit the company’s revenues and its ability to pay interest on the $13 billion debt that Musk took on to purchase Twitter.
The news comes shortly after the billionaire disclosed about $3.6 billion more in sales of Tesla stock earlier this week, culminating in nearly $40 billion worth of shares in the electric-vehicle company being sold in 2022.
On Friday, Tesla shares posted the worst weekly loss since March 2020, with investors increasingly concerned about Musk being distracted by Twitter and the global economy slowdown.
The businessman agreed to acquire Twitter in April. He bought the company only in October after spending months trying unsuccessfully to get out of the deal. Musk has sold Tesla shares to help finance the purchase, and that has weighed on the stock, which is down 57% this year.
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