Elon Musk Doesn’t Have Enough Liquid Assets To Buy Twitter
A New York University (NYU) professor has claimed that Elon Musk may not have enough liquid assets to buy Twitter in an all-cash deal and might have to borrow against his Tesla shares if he wants to go ahead with the purchase. According to Forbes' real-time billionaires list, Elon Musk is the world's richest person with a net worth of $269.5 billion. Much of Musk's wealth, however, is vested in his Tesla and SpaceX stocks, with his current liquid assets estimated to be around $2.95 billion – not nearly enough to buy Twitter.
Earlier this month, Elon Musk offered to buy Twitter for an estimated $43 billion at $54.20 per share. The offer came just days after he became the company's largest shareholder following his purchase of a 9.2 percent stake for a reported $2.89 billion. The Twitter board, however, has since indicated that it's not interested in being bought by the Tesla and SpaceX CEO and adopted the so-called 'poison pill' defense to prevent Musk from taking over the company. While Musk has claimed that he has a Plan B if his offer is rejected by the Twitter board, questions about his ability to finance the deal remain.
Related: Can Twitter Stop A Musk Takeover With A 'Poison Pill'?
According to NYU professor Scott Galloway, Elon Musk doesn't have enough cash in hand to buy Twitter outright. On his podcast Pivot that he co-hosts with tech journalist Kara Swisher, Galloway claimed that the only way Musk would be able to finance the deal is by borrowing against his Tesla stock. According to Galloway, who is a professor of marketing at NYU's Stern School of Business, Musk cannot use debt to finance the Twitter deal because «no firm is going to loan him more than a billion or a few billion dollars» given that Tesla
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