Elon Musk’s team has reached out to investors to raise new funds for his struggling social media platform Twitter, one of the investors said.
Ross Gerber, president and CEO at Gerber Kawasaki Wealth & Investment Management, told Reuters that he was contacted by a Musk representative about offering more shares at the same price, $54.20, that Musk paid to take the company private in October.
Elon Musk’s team has reached out to investors to raise new funds for his struggling social media platform Twitter, one of the investors said.
www.reuters.com
This can't be good news for them, right? Everyone agrees he overpaid for Twitter, but he's begging people to buy in more at the same inflated rate which will only dilute his own investment, right? So I can't imagine he would do this unless the cash crunch is truly dire.
I was trying to think of why anyone would respond, then I realized they might have to do it to protect their own investment because Twitter might be in danger of folding if Musk doesn't get more money.