Topline
Tesla’s billionaire CEO Elon Musk, who submitted a $43 billion bid to buy Twitter on Thursday, said later in the day at a TED conference in Vancouver that he has “sufficient assets” to buy the social media company and already has a “Plan B” ready if the board decides to reject his offer.
Musk also called regulators at the Securities and Exchange Commission “bastards.”
Key Facts
“I can do it if possible,” Musk said at the conference when asked if he could actually afford to buy Twitter, adding that he has “sufficient assets” to carry out such a deal, amid doubts that he has enough liquidity given almost all his wealth is tied up in SpaceX and Tesla stock.
The Tesla billionaire also said that he “has a Plan B” if Twitter’s board of directors, which will meet to discuss his attempted acquisition, reject his offer.
The comments notably contrast with what Musk said earlier in filings with the Securities and Exchange Commission, when he described his $43 billion takeover bid for Twitter as his “best and final offer.”
Musk reiterated that he wants to buy the social media platform as it has become the “de facto town square” and it remains imperative for there to be “an inclusive arena for free speech” in society.
“I don’t care about the economics at all,” Musk responded when asked about making money on Twitter, adding that he wants to convert the platform to an open-source algorithm where users could review the code, instead of “having tweets sort of be mysteriously promoted and demoted with no insight.”
Surprising Fact:
In other comments, when asked about his notorious “funding secured” tweet in 2018, a reference to taking Tesla private, Musk insisted that it had been truthful and he did in fact have the funding at the time. On his subsequent settlement with the Securities and Exchange Commission, Musk called the regulators at the agency “bastards,” saying he was coerced into a settlement to save his company from having its assets seized.
What To Watch For:
Musk expressed doubts about the chances of his takeover bid: “I’m not sure that I will actually be able to acquire it,” he said at the TED conference. “I should also say, the intent is to retain as many shareholders as is allowed by the law,” Musk added, though he also insisted that he could still “technically afford” to buy everyone else out.
Tangent:
Musk’s bid to buy Twitter was met with mixed reactions from Wall Street analysts on Thursday. Some experts are adamant that Twitter will have a hard time rejecting the $43 billion offer or that this is just the beginning of a hostile takeover battle. Others remain highly skeptical, with some analysts calling Musk’s latest moves a “distraction” from challenges at Tesla.
Further Reading:
Distraction Or Hostile Takeover? Here’s What Analysts Say About Elon Musk’s Offer To Buy Twitter (Forbes)
Elon Musk Wants To Buy Twitter And Take It Private, SEC Filing Reveals (Forbes)
Source: https://www.forbes.com/sites/sergeiklebnikov/2022/04/14/musk-says-he-has-sufficient-funding-to-buy-twitter-claims-he-has-plan-b-if-offer-is-rejected/