Tuesday, March 28, 2023

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.

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.


Nation World News Desk
Nation World News Deskhttps://nationworldnews.com
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
Latest news
Related news