Elon Musk is a controversial man in many ways. He is undoubtedly the first “richest man” who has made social media and Twitter, in particular, an essential tool of his reign. Most recently, the founder and principal shareholder of Tesler and SpaceX announced the acquisition of Twitter for the steep price of $44 billion. Shortly after that, he declared the deal pending because the number of Twitter fake accounts would be significantly higher than the maximum 5% stated by Twitter in an SEC filing. Now SpaceX is expected to set new records with a new capital increase helping Musk to finance the Twitter deal.
Space Exploration Technologies Corp. d/b/a SpaceX (www.spacex.com), founded by Elon Musk in 2002, is a US space transportation services provider in California. SpaceX has reportedly had several successful launches in recent months. In 2022, it launched 19 rockets placing 53 satellites for its Starlink network that provides Internet access to underserved areas of the world, including war-torn Ukraine.
According to the New York Post, SpaceX is planning to sell existing shares to selected investors and there is speculation Elon Musk is allegedly selling part of his shares. As of August 2021, Musk owned 44 percent of the SpaceX shares. The company last raised $337 million in December at a $100 billion valuation. According to New York Post information, SpaceX is going to seek $70 a share, which would be a 25 percent increase from its last round and would value the startup at around $125 billion.
The SpaceX funding round would make the space company the highest valued US startup on record, according to data from CBInsights.
The billionaire could sell SpaceX shares to support the funding for the Twitter acquisition. Musk has been trying to raise more money for his $44 billion Twitter bid and is not only having a difficult time but finding it expensive, sources close to the situation said. The deal will be a lot harder to sell he has questioned Twitter’s user base and undermined Twitter‘s value. Tesla shares have taken a beating since Musk’s announcement to buy Twitter last month.
