EXCLUSIVE: 'Scrape The Place Clean' — 'Shark Tank' Investors Weigh In On Elon Musk's Twitter Purchase
We know the world’s richest man, Elon Musk, recently closed a highly contentious deal: the $44-billion acquisition of micro-blogging platform Twitter, said Shark Tank investors.
On set, the venture capitalists take pitches from startups and determine whether the business is investable, and act accordingly.
A reporter asked the Sharks (more specifically, Kevin O’Leary and Mark Cuban) what they think of Musk’s purchase, which just so happens to be the largest leveraged buyout deal of all time.
O’Leary said: “[Twitter] was a miserably run company since it first went public. A rotating cast of CEOs sucked billions out in option grants, created no value.”
O’Leary, also known as Mr. Wonderful, has invested in dozens of companies through “Shark Tank” and has a sprawling portfolio across private, equity and cryptocurrency investments.
Mr. Wonderful said that “Musk should take out a spatula, scrape the place clean and start from scratch.”
Cuban, owner of the Dallas Mavericks and co-founder of Cost Plus Drugs — which fills and delivers prescriptions for significantly less than a regular pharmacy — said:
“I’m looking forward to the Elon Musk era on Twitter. He is a ready, fire, aim entrepreneur who will truly enjoy f***ing with everyone who has an expectation of him.
“The only expectation you can have of Elon Musk is that he will flex his independence to show everyone who’s in charge.”
The “Shark Tank” investor, who is worth $4.6 billion, continued: “[Twitter is] a unique asset that [Musk] will be able to take public the next time there is an insane bull market. He just needs to grow it profitably, and he will make a killing.”
Why It Matters: Musk reportedly told prospective investors that he could take the social media giant public again after just a few years, a news report said.
The Journal said that Musk stated his intention to launch an IPO for Twitter as soon as three years after purchasing the company.
After assuming control of the social media platform late last week, the billionaire has already made drastic changes, including dismissing the entire board of directors, exploring changes to the way material is moderated and planning for a paid verification service.
As Mr. Musk announces ambitions to change how Twitter has controlled the dissemination of information on its platform, particularly from sources like state media, politicians, and celebrities, his acquisition has received considerable attention.
Musk stated that no changes will be made just yet and that the business would elect a new council to make such decisions.
He financed his takeover with his own money, a group of other investors and roughly $13bn in debt financing.
Produced in association with Benzinga.
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