Twitter: Musk To The Rescue
- Elon Musk acquires more than 9% of Twitter.
- The company has long struggled with growing ad revenues inline with Facebook in part due to executives not actually using Twitter.
- The stock is cheap at 5x forward EV/S targets with the potential for the business to accelerate growth to match the influence of the social platform.
- The potential exists for Musk to buy the stock at a higher price, but that isn't the base case here.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
-That financing comprises a debt commitment letter from Morgan Stanley and other institutions covering $13 billion in loans; a separate debt commitment letter from Morgan Stanley and others for $12.5 billion in margin loans; and an equity commitment letter from Musk for equity financing of $21 billion.