Twitter seeks new funding from investors, according to one of the investors approached by Elon Musk’s team.
According to Reuters, Ross Gerber, CEO of Gerber Kawasaki Wealth & Investment Management, received a request from a representative of Elon Musk to purchase additional shares of Twitter at the same price that Musk paid to take the company private in October ($54.20).
The request was reportedly made by Jared Birchall, the managing director of Musk’s family office, to potential investors this week, according to sources cited by news platform Semafor. Both Twitter and Musk have not commented on the matter.
The reported fundraising effort comes as Twitter has faced a decline in advertising revenue due to concerns about Musk’s management of the platform, which has impacted its ability to pay the $13 billion debt incurred during the purchase of the social media company.
This week, Musk also sold $3.6 billion worth of shares in Tesla, bringing the total value of shares sold in the electric vehicle company to almost $40 billion this year.
Tesla shares experienced their worst weekly loss since March 2020, causing investors to express concerns about Musk’s focus on Twitter and the impact of the slowing global economy.