Elon Musk asks Twitter investors for more money
Elon Musk is asking Twitter investors to dig deeper into their pockets, as he seeks to make the social media company financially viable.
Driving the news: Musk, via his family office, this week privately offered to sell additional equity at the same $44 billion valuation that he's essentially admitted was an overpay.
- The news was first reported by Semafor and confirmed to Axios by an investor who received the letter.
- Musk has not said how much new capital he's seeking to raise, nor provided investors with financial updates on the company.
- His original takeover was partially funded by outside investors like Andreessen Horowitz, Sequoia Capital, Fidelity, and Oracle founder Larry Ellison. Several large Twitter investors also rolled over their equity stakes, including company co-founder Jack Dorsey and Saudi Arabia's Kingdom Holding Company.
- Twitter no longer has a communications team or other spokespeople for Axios to contact for comment.
Flashback: Earlier this week, Musk sold around $3.58 billion of Tesla stock, despite having repeatedly pledged earlier this year not to do so.
- Musk hasn't said why he sold the shares, or if it was to help refinance some of the high-interest loans that Twitter carries because of Musk's buyout.