[Asia Economy Reporter Jeong Hyunjin] Elon Musk, CEO of Tesla, reportedly told investors that he might relist Twitter within three years after acquiring it on the condition of delisting, according to the Wall Street Journal (WSJ) on the 3rd (local time).
WSJ, citing multiple sources, reported that Musk made these remarks while meeting with investors, including private equity firms such as Apollo Global Management, during the process of raising $21 billion out of the $44 billion (approximately 55.7 trillion KRW) acquisition fund for Twitter. Typically, when private equity firms acquire a company, they delist it, improve corporate structure to enhance efficiency and profitability, and then relist it within five years at a higher price. Musk indicated that he plans to adopt a similar approach.
WSJ stated, "Musk's plan could help convince investors that he will accelerate Twitter's business operations and profitability improvements."
Musk has not disclosed many specific methods to improve Twitter's profitability. During the acquisition process, he also mentioned that whether he could make money from this deal was not important to him. However, it is interpreted that he brought up the relisting option to persuade private equity firms in order to secure funding.
Earlier, on the 25th of last month, Musk agreed with Twitter's board to acquire Twitter for $54.2 per share, totaling approximately $44 billion. Subject to shareholder and regulatory approvals, Musk's acquisition of Twitter is expected to be completed within this year. Once the acquisition is finalized, Twitter will become a private company. To secure funds, Musk sold 9.6 million shares of Tesla stock worth about $8.5 billion.
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