Elon Musk Doesn’t Have Enough Liquids To Buy Twitter

A professor at New York University (NYU) confirmed that: Elon Musk you may not have enough liquid business to buy Twitter in a cash deal and you may need to ask Tesla to invest in your business to proceed with the purchase. According to Forbes’ list of real-time billionaires, Elon Musk is the richest person in the world, with liquid assets of $269.5 billion. Much of Musk’s wealth, meanwhile, has been invested in his Tesla and SpaceX assets, with his liquid activities estimated at about $2.95 billion — not enough to buy Twitter.

Earlier this month, Elon Musk offered to buy Twitter for $43 billion to $54.20 a share. The offer came a few days after he became the company’s largest shareholder after buying a 9.2 percent stake in $2.89 billion. The Twitter board, meanwhile, has already indicated that it is not interested in taking over the CEO of Tesla and SpaceX, calling it the “venenopil” to prevent Musk from taking over the company. Embora Musk has confirmed that he has a plan B if his offer is presented to Twitter’s board, and remains unsure of his ability to fund the deal.

According to NYU professor Scott Galloway, Elon Musk doesn’t have enough money to buy Twitter. on your podcast pivot co-presented with technology journalist Kara Swisher, Galloway claimed Musk’s only way to fund the deal is to invest in his stock with Tesla. According to Galloway, a marketing professor at NYU’s Stern School of Business, Musk can’t use money to fund the deal with Twitter because “No company will invest more than a billion or a few dollars” since Tesla has officially not made a profit. He also cannot get help from his billionaire friends as they can be sure of the return on investment. Meanwhile, the only path for Musk to follow would be by accident, which could jeopardize his participation in Tesla.

Galloway also confirmed that Musk could still struggle to pay the US$40 billion bank due to the risks. Most banks will likely recoup the total value of the company, meaning Musk may have to go to different banks to build the money. Likewise, banks will inevitably demand generous margin requirements from their Tesla operations to protect their investment. While Musk offers the company some form of guarantee, however, he may have issues with the value of Tesla’s liquid assets so he can break a margin call, selling his Tesla shares to banks to recoup his investment.

Galloway and Musk have some history between them, the two previously worked on songs on Twitter. Galloway has been a vocal critic of Musk and has appealed to the CEO of Tesla and SpaceX in the past. In November 2021, Musk referred to for Galloway as “That Unbearable Idiot” as it is suggested that Tesla’s actions are being monitored following Musk’s decision to sell a small stake in the company. The latest developments are unlikely to improve their relationship, and it will be interesting to see how Elon Musk responds to Galloway’s accusations.

Source: Beer, Elon Musk/Twitter

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