Musk Expects to Take Twitter Public Again in the Future

Reporting from the Wall Street Journal this week indicates that Elon Musk has told potential investors in his acquisition of Twitter that he expects to take the company public again in a few years after taking it private, upon closing his purchase.

The billionaire founder and CEO of Tesla and SpaceX has told high-leverage investors he is recruiting that he wants to discuss the prospects of a new Initial Public Offering of Twitter stock within three years of taking over the social media giant.

Musk’s offer to purchase the company is currently valued at around $44 billion. That figure is based on his offer to the Twitter board to purchase 100% of the company’s stock at $54.20 per share. That offer was accepted and amounts to a premium of about 18% over the market price of the stock when he made the proposal.

Musk is currently contemplating financing through Morgan Stanley, although he will retain total control of the company. The agreement is expected to clear regulatory and legal requirements and close by November.

Musk is reportedly looking for other investors to come on board so that he can secure additional financing to reduce the amount of personal cash he will be required to pay to close the transaction. The purchase agreement gives Musk the right to bring other investors on board to assist with his financing of the purchase price.

The promise of a proposed new public offering of the company’s stock should prove lucrative to investors interested in obtaining a profitable return.

Musk is also reportedly discussing a Twitter investment with private equity firm Apollo Global Management.

Musk is currently reported to be the world’s richest man in total net worth. He originally planned to obtain $21 billion in cash by pledging some of his stock equity in Tesla, which makes up the largest part of this net worth. Over the last week, he has sold around $8.5 billion worth of his stock in Tesla for cash, leading to a drop in the market price of the stock.

Tesla’s stock has lost around 27% of its value since the beginning of the year. Twitter’s stock is up around 18% over the same period.