Elon Musk is trying to cut back on costly unsecured loans tied to his $44 billion Twitter purchase by selling $3 billion worth of Twitter shares, according to a report from The Wall Street Journal. But despite what Musk has said recently about his “track record” of raising money, the paper claims investors aren’t immediately getting in line to grab the pieces of Twitter he’s offering.
Sources tell the WSJ that in December, the billionaire’s team sent out emails to potential investors trying to raise $3 billion to pay off “an unsecured portion” of Twitter’s $13 billion debt with the highest interest rate. The WSJ reports some backers “balked at the terms” due to the state of Twitter’s finances but also notes it couldn’t determine the current state of fundraising talks.
When asked on Twitter whether the WSJ’s report is accurate, Musk answered simply, “No.”
In sharp contrast to the reports, Musk has boasted about his ability to secure strong investments during his securities fraud trial. Testifying on Tuesday, the billionaire bragged that it’s “relatively easy” for him to secure investments:
Every time we’ve raised money, it has been at a higher price. So investors have done extremely well. That is why it is relatively easy for me to get investor support because my track record is extremely good… It is accurate to say that I probably have the best track record with investors.
Shortly after taking over the platform in November, Musk complained about losing $4 million per day and didn’t rule out the possibility of bankruptcy.