December 17, 2022
The social media platform reportedly saw major advertiser exits over Musk’s tweet policies
Elon Musk’s family office, which owns and runs Twitter, is currently searching for investors, according to the news site Semafor, citing two sources familiar with the issue. It follows media reports about the latest exodus of advertisers and the social media giant’s heavy debt burden.
Jared Birchall, managing director of the Musk’s family office, is reportedly seeking cash injections 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 large advertiser outflow due to a stream of controversies centered around Musk’s management of the platform.
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, bringing the total value of shares in the electric-vehicle company sold to nearly $40 billion in 2022.
The businessman agreed to acquire Twitter in April but only bought the company 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.
This article was originally published by RT.
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