The Rugglion Blog

Topline

Friends of the world’s wealthiest man Elon Musk tried to convince him not to buy Twitter once they realized he was serious about the acquisition, sources told Axios, as Musk tries to back out of his $44 billion social media company in the world’s most high-profile product return.

Key Facts

Elon Musk’s billionaire buddy Reid Hoffman, who was an early PayPal employee alongside Musk and later co-founded LinkedIn, told Axios his reaction to the Twitter deal was, “‘Oh my God, another huge problem” on Axios’ How It Happened podcast.

Other people close to Musk told Axios they were concerned about how the acquisition would take away from his focus at SpaceX and Tesla, both of which Musk leads as CEO.

Hoffman told Axios his venture firm Greylock Partners declined to take part in Twitter’s financing, but expressed optimism about Musk’s ability to lead at Twitter, citing his “ability to get through kind of death defying, where you think, ‘Oh my God, this isn’t gonna work,’ and to just keep going at it.”

Key Background

Musk disclosed April 4 he bought a 9.2% stake in Twitter, which announced later that month it accepted Musk’s $44 billion unsolicited offer to buy the company. Musk is one of the platform’s most popular and polarizing users and a sharp critic of Twitter’s content moderation policies. The lust between the unlikely couple proved short-lived, as Musk attempted to withdraw from the purchase agreement in July, while Twitter sued Musk days later to push the deal through. Musk and Twitter will face off in a five-day trial in Delaware next month.

Forbes Valuation

We estimate Musk is worth $270.4 billion, a fortune about $120 billion greater than the next largest. Hoffman is worth a comparably meager $1.9 billion and has served on Microsoft’s board since the company acquired LinkedIn in 2016.

Further Reading

Elon Musk vs. Twitter (Axios)

Twitter Shareholders Formally Accept Musk’s $44 Billion Offer He’s Desperately Trying To Get Out Of (Forbes)