Musk – Twitter, expensive PR or “cat game” of the century?

Until now, it is still not known exactly what billionaire Elon Musk intends to do with the social network Twitter – after falling for $ 44 billion, and then flirting with it for half a year without being able to make a decision to close the deal. .

Twitter’s lawyers sued Musk in a Delaware court for at least $1 billion in damages after the platform suffered disturbance damages due to disinformation in the M&A market.

The trial was scheduled to open on October 17, but the US billionaire postponed the military until before 5 pm on October 28, 2022, paid $ 44 billion and owned Twitter or appeared in court.

A person as dense in experimental science as Musk, who needs a lot of money for the existence and development of SpaceX, could Tesla pursue a non-profit project of up to $44 billion?

And he himself wants to carry out the noble mission of “defending freedom of speech” on the planet. But the last great thing for a large capitalist is how much profit. So, if he wants to “play” social networks, is it necessary to invest such an unprecedented amount of money in the start-up?

Initial theories that Elon used this deal to polish his name and raise capital for ambitious projects in the sky were stalled. By owning Twitter, Musk can use his influence and popularity on the platform to financially benefit other companies like Tesla and SpaceX.

Notably, Tesla is the only car company on earth that doesn’t spend a dime on advertising. Musk, in addition to being the richest billionaire in the world, is also an expert in Marketing – promoting his business on Twitter and similar social networks.

Western experts say that the biggest obstacle for Musk is money, the big bank Morgan Stanley and a number of other financial institutions have guaranteed $ 25.5 billion, the billionaire personally manages the rest. from cryptocurrency exchange Binance and some investors.

Tesla stock isn’t in its prime right now

But it was the fame that made the Tesla boss buy his own lanyard. Banks have absolutely good reason to withdraw from the Musk funding deal, because Twitter is no longer as attractive as it was 6 months ago.

But that doesn’t mean Musk will “go too far” downstream to cancel the purchase agreement with Twitter without paying at least $ 1 billion. The bank itself also weighed the risk of entering into this deal with the risk of losing its relationship with Musk if it upset the owner of total assets of $ 219 billion!

For those reasons, Musk is likely to close the deal after selling off Testa shares after October 19, when he announced the third-quarter business results report of the third quarter of 2022. Shares of the US electric vehicle maker are now down about 32% from their peak.

“Musk’s $44 billion takeover offer of Twitter will go through – and it will ultimately benefit Musk,” said Kevin O’Leary, a popular Shark Tank in the US.