Elon Musk is trying to cut costly unsecured loans tied to his $44 billion Twitter buyout by selling $3 billion worth of Twitter stock, according to a report by The Wall Street Journal. But despite what Musk said recently about his fundraising “track record”, the newspaper says investors aren’t immediately lining up to grab the pieces of Twitter he offers.
Sources say WSJ that in December, the billionaire’s team emailed potential investors trying to raise $3 billion to pay off “an unsecured portion” of Twitter’s $13 billion debt with the rate of highest interest. The WSJ reports that some funders “have hesitated over terms” due to the state of Twitter’s finances, but also notes that it could not determine the current status of fundraising talks.
When asked on Twitter if the WSJThe report is accurate, Musk simply replied, “No.”
Contrary to reports, Musk bragged about his ability to secure solid investments during his securities fraud trial. During his testimony on Tuesday, the billionaire bragged that it was “relatively easy” for him to secure investments:
Each time we have raised funds, it has been at a higher price. So investors did extremely well. That’s why it’s relatively easy for me to get investor support because I have an extremely good track record… It’s fair to say that I have probably the best track record with investors.
Shortly after taking over the platform in November, Musk complained of losing $4 million a day and did not rule out the possibility of bankruptcy.
Correction on January 25, 10:14 p.m. ET: A previous version of the article incorrectly stated that Musk was offering Tesla stock at $54.20 per share when it was on Twitter. We regret the error.