Investor says Elon Musk’s team is seeking new funding for Twitter

(Reuters) – Elon Musk’s team has reached out to investors to raise new funds for his ailing social networking platform, Twitter, an investor said.

Ross Gerber, president and CEO of Gerber Kawasaki Wealth & Investment Management, told Reuters that a Musk representative approached him about offering more shares at the same price, $54.20, that Musk paid to take the company private in October.

Jared Birchall, managing director of Elon Musk’s family office, reached out to potential investors this week, news platform Semaphore reported Friday, citing two people familiar with the fundraising effort.

Twitter and Musk did not respond to Reuters requests for comment.

Twitter has seen advertisers flee amid concerns about Musk’s approach to censoring tweets, hitting revenue and his ability to pay interest on the $13 billion in debt Musk took on to buy the social media company.

Musk sold another $3.6 billion worth of shares in Tesla earlier this week, making nearly $40 billion in shares in the electric car company sold this year.

Tesla shares on Friday posted their worst weekly loss since March 2020, as investors grew increasingly concerned about Musk being distracted by Twitter and a slowing global economy.

covering Hyunju-jin in San Francisco, Priamvada C in Bengaluru; Editing by Shonak Dasgupta and Michael Berry

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