Musk is excited about buying Twitter but knows he's overpaying
A lot of us have been wondering what Elon Musk thinks about paying more than the market value for Twitter. Well, now we have an answer. The billionaire said that he is excited about acquiring Twitter despite needing to pay more than what it's worth. Yes, he knows he is overpaying. The Tesla CEO said this during a call after the automaker's quarterly report.
Why does this story matter?
With just over a week left to complete the Twitter acquisition, Musk's statement about how excited he is should make the stakeholders relaxed. He's indeed overpaying, but maybe he's doing it for the future. We know that the billionaire has plans to create a WeChat-like all-encompassing social network. The acquisition of Twitter could be just the beginning of a new social media empire.
Twitter's long term potential outweighs its current value: Musk
Answering a question about Twitter during a call after Tesla's quarterly report, Musk called the social media company an asset that had "languished" for a while. He agreed that he and other investors are overpaying for the social media company. However, the billionaire was of the opinion that Twitter's long-term potential is much greater than its current value.
Musk has time till October 28 to complete deal
The Musk-Twitter saga is one with several twists and turns. After trying his best to back out of his bid to buy the social media company, Musk made a U-turn earlier this month. He's now ready to buy Twitter for the same price. A Delaware judge has paused Twitter's lawsuit against him. The Tesla CEO has time till October 28 to complete the deal.
Investors fear that Musk may sell more Tesla stocks
During the call, Musk spoke about Tesla's potential to surpass Apple and Saudi Aramco to become the world's most valuable company. He said that the automaker could be worth more than the combined value of the two. Tesla investors have been worried about Musk's potential Twitter acquisition. They fear that the billionaire may sell more stocks to finance the deal.
