Elon Musk is the richest person in the world, with an estimated fortune of USD 260 billion today. So of course it's easy for him to buy Twitter worth USD 43 billion. However, it turned out to be not that simple.
As reported, the skipper of SpaceX and Tesla wants to control all of Twitter's shares at the stated dowry. The offer of USD 43 billion will be paid in cash, if the Twitter accepts it.
However, Elon Musk's great fortune is actually in the form of SpaceX and Tesla shares, not cash. When traced, the cash is far from the offer to Twitter.
According to Bloomberg analysis, Elon Musk 'only' has around $3 billion in cash, the rest is stock. This means that there are still tens of billions of dollars less to buy Twitter.
However, he could easily make up for the shortfall, for example by selling some of his stake in Tesla or SpaceX. But such a sale is considered risky, for example, sending Tesla's stock price down.
"This is an aggressive attempt to control Twitter that will cost a lot of cash. He'll have to sell enough Tesla shares to finance it or take out a big loan," said Neil Campling, analyst at Mirabaud Equity Research, quoted by News.com.au.
Speaking at the TED conference, the Tesla and SpaceX skipper stated his reasons for buying Twitter were not business or economic related, but to ensure that Twitter will remain a trusted platform for democracy.
"This is not the way to make money. My strong intuition is that having a public platform that is maximally trusted and broadly inclusive is very important for the future of civilization," he said.
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