Longtime Elon Musk backer says Twitter deal will close at lower price

A longtime investor in Elon Musk’s corporations predicts the mogul’s Twitter takeover bid will shut — however not till the Tesla titan negotiates a lower cost. 

Tim Draper, an early investor in Tesla and SpaceX who co-founded a enterprise capital agency that’s sinking $100 million into Musk’s Twitter bid, was requested Monday whether or not he thought Musk would efficiently shut the deal. 

“I believe so,” Draper responded. “However I believe he’s going to get a greater deal as a result of he came upon that, no matter, two-thirds [of users] are bots or one thing.” 

Whereas Twitter formally accepted a $44 billion provide from Musk in April, the Tesla CEO has since pumped the brakes on his takeover bid over alleged considerations associated to pretend accounts and spam. Musk had provided $54.20 a share however the inventory was buying and selling at round $37 on Monday.

On Friday, Musk stated the deal was “quickly on maintain pending particulars supporting calculation that spam/pretend accounts do certainly characterize lower than 5% of customers” — earlier than insisting hours later that he was “nonetheless dedicated” to the buyout. 

Then on Monday, Twitter CEO Parag Agrawal posted a thread about steps the corporate is taking to measure and take down bots. Musk then responded with a smiling poop emoji. 

Some analysts have speculated that Musk is utilizing the spam challenge as a negotiating tactic, whereas others say he’s gotten chilly toes and is searching for a method to get out of the deal altogether.

Draper — a longtime bitcoin bull who has additionally invested in Skype, Coinbase and Elizabeth Holmes’ defunct blood startup Theranos — stated Musk will go ahead with shopping for Twitter as a result of he believes in free speech. 

“I believe he believes — and weirdly Jack Dorsey believed — in free speech,” stated Draper throughout an interview with Fox Enterprise’ Liz Claman on the Token Safety Summit in Manhattan. “And he’s type of terrified they’re — Twitter is — type of the arbiters of what persons are allowed to say. And I believe he simply went in and stated, ‘You recognize, I can purchase it.’ And he simply goes to. I believe that’s principally what occurred.” 

Draper co-founded a enterprise capital agency referred to as Draper Fisher Jurvetson, however left the agency in 2013. A spin-off of Draper Fisher Jurvetson, referred to as DFJ Development, is contributing $100 million to Musk’s Twitter bid alongside different traders, together with Oracle’s Larry Ellison and Saudi Prince Al Waleed Bin Talal al Stated. 

“He’s type of terrified they’re — Twitter is — type of the arbiters of what persons are allowed to say,” Draper stated of Musk.
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It’s unclear whether or not Draper performed any function in DFJ Development becoming a member of Musk’s Twitter bid. DFJ Development didn’t instantly reply to a request for remark. 

Draper additionally predicted that the present crypto market massacre will quickly give method to a rally. He made the daring declare that bitcoin, which was buying and selling at $29,900 on Monday afternoon, would hit $250,000 by the tip of 2022 or early 2023. 

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