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Source: http://www.mashable.com
Musk is said to have notified possible investors of his plans to return the social media company to public ownership in a few years.
After years of being publicly traded, the Twitter platform has now been taken over by private owners. However, Twitter's new owner, Elon Musk, aims to re-list the micro-blogging network.
According to a recent Wall Street Journal story, the Twitter stock may once again be available for purchase. Twitter will be relisted on the stock exchanges after Elon Musk, who just agreed to buy all of Twitter's publicly traded shares, says he expects to do so. A $44 billion deal has been promised by Elon Musk to take Twitter private.
Musk is said to have notified possible investors of his plans to return the social media company to public ownership in a few years. Within three years, Tesla CEO Elon Musk expects Twitter to go public with an Initial Public Offering (IPO).
Elon Musk made a $44 billion all-cash offer to buy Twitter in April 2022. Using $21 billion in equity and a $12.5 billion loan against Tesla stock, he came up with the arrangement. To seal the deal, he even sold some of his Tesla stock.
One of the biggest buyouts in history is taking Twitter private. Tesla CEO Elon Musk may have a difficult time convincing large investors about Twitter's future financial prospects. For his $44 billion plan, Tesla CEO Elon Musk is said to be in talks with significant investment groups and wealthy individuals.
Relisting Twitter appears to be at odds with Musk's plans to buy and take private the social media network, which he did in the first place. A recent TED talk by him stated this:
"I don’t care about the economics at all. This is just my strong, intuitive sense that having a public platform that is maximally trusted and broadly inclusive is extremely important to the future of civilization."
Bankers have reportedly heard from CEO Elon Musk that he plans to reduce the number of employees at Twitter in order to improve the company's bottom line. Subscription-based revenue streams were also brought up as a means of generating more money from the network.
It wasn't until Twitter's board heard about Musk's intentions for employee cutbacks and tweet monetization that the company's valuation and financial performance were considered.
Clearly, Elon Musk does not intend to invest a big amount of his money in this one transaction. ' It is possible that the proposed the idea of taking Twitter public in order to repay the $44 billion investment but also to earn a profit from it in the future.
On the surface, Twitter is a powerful social media network with around 220 million active daily users, yet it is dwarfed by the likes of Facebook and Instagram.