One of the largest investors in Elon Musk’s $44 billion purchase of Twitter Inc., Aliya Capital Partners LLC, stated on Tuesday that despite the social media company’s issues, it expects to make up to five times its money.
After firing more than half of Twitter’s 7,500 employees and alienating some users with his swiftly changing moderation policy decisions, Twitter has been hemorrhaging advertisers. The social media company has been “in the fast lane to bankruptcy since May,” Musk claimed in a tweet earlier this week. He took control of Twitter on October 27. This week, he declared that he will follow the outcome of a Twitter poll in which the majority chose for him to step down as CEO.
With respect to Twitter’s 229 million daily active users, which have “historically been under-monetized,” Aliya, a Miami-based manager of wealthy families’ wealth, which contributed $360 million alongside Musk to the purchase of the company, expressed confidence in Musk.
“We believe Twitter will produce a return of 4-5x in just a few years, with comparably limited downside risk,” Aliya Chief Executive Ross Kestin said in a statement.
An inquiry for comment was not immediately answered by a Musk spokesperson.
In response to further inquiries regarding Twitter’s difficulties under Musk, Kestin remained silent. Twitter’s financial difficulties under Musk are highlighted by the fact that the banks that financed the Twitter buyout do not think the debt is worth its full value and have struggled to get it off their books by selling it to credit investors.
Kestin cited Musk’s other accomplishments at electric vehicle manufacturer Tesla Inc and rocket developer SpaceX as the reason for his belief in the multibillionaire businessman. Aliya also invested in SpaceX.
“While the global auto industry was literally spinning its wheels creating the same dull product, Elon created an industry. When NASA couldn’t get its rockets off the ground, this man’s vision took off,” Kestin said.
(Adapted from BusinessToday.in)