Elon Musk Could Make Twitter Worse Says Bill Gates as Tesla CEO Closes in on Securing New Financing
2022.05.05 13:36
Elon Musk Could Make Twitter (TWTR) Worse Says Bill Gates as Tesla CEO Closes in on Securing New Financing
Microsoft (NASDAQ:MSFT) co-founder Bill Gates said that Elon Musk could make Twitter (NYSE:TWTR) “worse” after the social media company accepted Musk’s $44 billion bid.
It remains to be seen how will Musk change the social media platform, said Gates at the Wall Street Journal’s CEO Summit on Wednesday. Gates also voiced his concerns over the spread of misinformation on social media networks.
Gates acknowledged Musk’s success with his previous companies including Tesla (NASDAQ:TSLA) and SpaceX, saying that his time as chief of these companies was “mind-blowing.” Musk has done an outstanding job of assembling a great team of engineers at Tesla and SpaceX, added Gates.
“I kind of doubt that will happen this time, but we should have an open mind and never underestimate Elon,” he said.
In the meantime, Musk is reportedly close to securing $10 billion in cash from his old financial backers to help him fund the $44 billion acquisition of Twitter.
According to the New York Post, Tesla’s boss is talking to multiple venture capital firms that have invested in his previous companies like Space X.
While no specific firms have been named, it is known that Musk’s previous financial backers have included D1 Capital Partners, Sequoia Capital, and Valor Equity Partners.
Musk has reportedly held talks with family offices that manage substantial amounts of private capital to help him fund the buyout.
“He has more than $10 billion of committed equity,” the report said.
Musk turned to his old investors even as talks with the tech-oriented private equity firm Thoma Bravo stalled after some executives at the firm were concerned about backing Musk, citing significant risk related to the deal.
The report said that Thoma Bravo’s co-founder Orlando Bravo has “spent hours talking to Elon” and was interested in backing Musk.
The Wall Street Journal published a report on Tuesday saying that Musk has told investors he intends to take Twitter public again within three years of the acquisition. Previous reports said that Thoma Bravo spotted an opportunity to cut costs at the social media giant and was looking to strike a major deal.
But some executives at the private equity firm were reluctant to back Musk, who has previously published numerous unusual tweets such as that he plans to transform Twitter’s headquarters into a homeless shelter.
By Senad Karaahmetovic
