Sunday, June 26, 2022

Longtime Elon Musk backer says Twitter deal will close at low price

A longtime investor in Elon Musk’s companies predicts that the mogul’s Twitter takeover bid will pay off — but not until the Tesla titan negotiates a lower price.

Tim Draper, an early investor in Tesla and SpaceX who co-founded a venture capital firm that sank $100 million in Musk’s Twitter bid, was asked Monday if he thinks Musk will successfully close the deal.

“I think so,” Draper replied. “But I think he’s going to get a better deal because he found that, whatever, two-thirds [of users] bots or something.”

While Twitter officially accepted a $44 billion offer from Musk in April, the Tesla CEO has since put the brakes on his takeover bid over alleged concerns related to fake accounts and spam. Musk had offered $54.20 per share but on Monday the stock was trading around $37.

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On Friday, Musk said the deal “supports the calculation on “temporarily pending details that spam/fake accounts actually represent less than 5% of users” — before insisting hours later that it would be up to the purchase. still committed”.

Then on Monday, Twitter CEO Parag Agarwal posted a thread about the steps the company is taking to measure and remove the bots. Musk then responded with a smiling poop emoji.

Some analysts speculate that Musk is using the spam issue as a negotiating tactic, while others say he’s got cold feet and is looking for a way out of the deal altogether.

Draper — a longtime bitcoin bull who has also invested in Skype, Coinbase and Elizabeth Holmes’ idle blood startup Theranos — said Musk would go ahead with buying Twitter because he believes in free speech.

“I think he believes — and oddly enough Jack Dorsey’s belief — in free speech,” Draper said during an interview with Fox Business’s Liz Clayman at the Token Security Summit in Manhattan. “And he’s kind of intimidated – Twitter is – the arbiter of what people are allowed to say. And I think he just went in and said, ‘You know, I can buy this.’ And he just keeps going. I think that’s basically what happened.”

Draper co-founded a venture capital firm called Draper Fisher Jurvetson, but left the firm in 2013. A spin-off of Draper Fisher Jurvetson called DFJ Growth is contributing $100 million to Musk’s Twitter bid, with other investors including Oracle’s Larry Ellison. Saudi Prince Al Waleed bin Talal Al Said.

Draper said of Musk, “They’re so intimidated by — Twitter is — what people are allowed to say.”
Getty Images

It’s unclear whether Draper played any role in Musk’s Twitter bid to join DFJ Growth. DFJ Growth did not immediately respond to a request for comment.

Draper also predicted that the current crypto market bloodbath will soon give way to a rally. He made the bold claim that bitcoin, which was trading at $29,900 on Monday afternoon, would reach $250,000 by the end of 2022 or early 2023.

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Nation World News Desk
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