Home Economy Business Why Elon Musk wants to buy Twitter even by ‘overpaying’

Why Elon Musk wants to buy Twitter even by ‘overpaying’

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Elon Musk on 19 said he was excited about his pending acquisition of Twitter Inc, although he and other investors were "overpaying" for the micro-blogging site. Musk, the chief executive of Tesla, was answering a question during a call after the electric vehicle maker's quarterly report.

The world's richest person is pursuing the Twitter purchase after earlier trying to back out of the $ 44 billion deal.

Musk described Twitter as an asset that had "languished" for a long time. "Myself (sic) and the other investors are obviously overpaying for Twitter right now. The long term potential for Twitter in my view is an order of magnitude greater than its current value," he said.

In the same conference call, Musk spoke optimistically about Tesla too. Tesla, with a market cap now under $ 700 billion, could be worth more than the combined value of Apple Inc's $ 2.3 trillion and oil producer Saudi Aramco's $ 2.1 trillion, he said.

Musk has been trying to raise capital to fund the Twitter purchase, and some experts say he may need to sell about $ 3 billion more in stock after the Tesla quarterly report to do so.

A Delaware ordered a pause to Twitter Inc's lawsuit against Elon Musk, giving the billionaire until 28 to close the deal.

Tesla investors feared that the billionaire may sell more Tesla stocks to finance the deal and may be spreading himself too thin, pulling down shares.

Musk, CEO of SpaceX, and Neuralink and Boring Company, said yesterday that he did not have a current plan to combine them with Twitter under one umbrella.

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