Elon Musk tries to raise up to $3 billion to pay off expensive Twitter debt amid struggle to retain advertisers: WSJ

  • According to a Wall Street Journal report, Elon Musk wants to raise up to $3 billion.
  • This will go towards paying off some of the more expensive debt he took on to buy Twitter.
  • In a tweet where Musk asked if the fundraising attempt was accurate, the Twitter CEO wrote, “No.”

Elon Musk is hoping to raise up to $3 billion to pay off part of the $13 billion loan package he used to acquire Twitter last year, according to the Wall Street Journal.

According to the magazine, the Twitter CEO was in talks with potential backers to sell $3 billion in new shares of the company in December, people familiar with the matter said. The new fundraiser could be used to pay off the most expensive unsecured portion of Twitter’s $13 billion debt package.

According to the report, Musk and his advisers were trying to raise money at a takeover price of $54.20 per share by the end of last year, although potential investors weren’t interested due to Twitter’s financial condition.

Musk’s account tweeted after the Wall Street Journal report was released on Wednesday, asking if the story was “accurate.”

In response, Musk tweeted “No.”

— Elon Musk (@elonmusk) January 25, 2023

Fresh cash could provide some relief in the struggle to keep advertisers on the platform. Musk previously said bankruptcy was a possibility during a general meeting in November. Twitter also suffered a “drastic drop in revenue” due to an advertiser exodus.

Late last year, The Journal reported that efforts to keep advertisers who were put aside by Musk to revamp the site were unsuccessful. The report says that about 70% of the biggest spenders before Musk took over were no longer spending money on ads on the site as of the week ending Dec. 18. In 2021, ads accounted for about 90% of Twitter’s revenue.

“Now I think Twitter will be fine next year,” the billionaire CEO said after a series of cost-cutting measures, including a series of massive layoffs in December.

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