Musk is pleased with the Twitter deal despite paying too much
Tesla investors believe Elon Musk is doing his best to buy ‘weak’ assets.
Oakland, California: Elon Musk said Wednesday that he is excited about the pending acquisition of Twitter Inc, even though he and other investors have overpaid the social media company.
Musk, Tesla’s CEO, answered a question during a call after the electric car maker’s quarterly report. The world’s richest person is seeking to acquire Twitter after trying to undo a previous $44 billion deal.
Musk described Twitter as an asset that has been “weakened” for a long time. “Obviously, I and other investors are overpaying for Twitter right now,” he said. “Twitter’s long-term potential, in my opinion, is an order of magnitude greater than its current value.”
In the same conference call, Musk also spoke optimistically about Tesla. He said Tesla, with a market capitalization of less than $700 billion, maybe more than the combined value of Apple of $2.3 trillion and $2.1 trillion of oil-producing Saudi Aramco.
Musk has been trying to raise money to fund the purchase of Twitter, and some experts say he may need to sell nearly an additional $3 billion in stock after Tesla’s quarterly report to do so.
A Delaware judge has ordered a stay of Twitter Inc’s lawsuit against Elon, giving the billionaire until October 28 to close the deal.
Tesla investors feared that the billionaire could sell more Tesla shares to fund the deal and that he could increase his capacity, sending the stock down.
Musk, the CEO of SpaceX and Neuralink and Boring Company, said Wednesday that he has no current plan to merge them with Twitter under one umbrella.
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