According to a Wall Street Journal report on Wednesday, Elon Musk, who is in the process of taking Twitter private, has already begun informing investors that they could potentially cash out through a public offering for the firm in as little as three years.
He was speaking with private-equity investors as he attempted to gather cash for his $44 billion takeovers of the social networking site, according to the WSJ, citing anonymous persons familiar with the issue. According to Insider, Musk has until October to complete his buyout.
Private-equity investors buy public companies in trouble, turn them around, and then relist them on public markets. Twitter’s cash reserves are depleted, and the company lost $221 million last year, according to Insider.
According to Insider, the world’s richest man didn’t reveal anything about how he planned to make Twitter lucrative in private meetings with investors.
According to the source, Musk’s lack of plans did not scare investors because he possesses various valuable assets that could be handy when he takes out financing for the purchase.
Musk’s promise that he will take Twitter public again in the next few years if it improves its bottom line swiftly could persuade investors to assist in his fundraising efforts, according to the WSJ.
However, the Tesla founder and CEO’s three-year timetable may be unduly optimistic. According to a survey by private bank Julius Baer, private equity investors typically invest in companies for three to five years.
And, as previously reported by Insider, Musk has publicly confessed that he struggles with deadlines.
“Well, I mean, punctuality is not my strong suit,” he stated in a 2018 “60 Minutes” interview in answer to a query about Tesla’s production objectives being missed.
Musk did not react quickly to Insider’s request for comment.
