44 billion dollars was how much Elon Musk agreed to
buy Twitter for.
April 25th was when Twitter accepted the offer.
Tesla has since that day lost 27% of its value, which
comes is over a quarter trillion in lost value, going
from 1.04 trillion to 754 billion currently.
Elon Musk owns 17% of Tesla, which he was going to
use his Tesla stock to get the funding to buy Twitter.
On April 25th, 44 billion dollars would be 24.8% of
Elon Musk Twitter stock.
Today, it’d be 34.3%.
This means if Tesla loses more value, Elon Musk puts
himself at a higher and higher risk of losing most of
his Tesla stock.
Which to those who don’t think that’s possible,
Microsoft was worth 261 billion in 1998, 671 billion in
1999, back to 250 billion by 2000 and spent a decade
under 200 billion.
Tesla is currently valued more than Microsoft was in
the 90s, when it comes to profit/growth rates, which
could mean a similar future is likely. If Tesla’s market
cap hit 258 billion dollars, that’d mean Elon Musk
would lose all of his Tesla stock buying Twitter.
Elon Musk did originally plan to have investors come
in for about 25% of the deal, getting people such as
Larry Ellison to invest a billion dollars, but it’s not clear
if that’s still on the table, post Elon Musk terminating it
in July.
Making it worse, this hasn’t been a great year for
Social media.
Facebook is down 59%.
Snapchat is down 76%.
Twitter’s market cap has gone up, but that’s only due
to the likely buyout. If Elon Musk does end up buying
twitter and tries to take it public again, it’ll likely be at
a huge loss over 44 billion.