Kevin O’Leary has just weighed Elon Musk’s controversial Twitter deal – and he’s siding with the world’s richest person.
The Shark Tank investor told CNBC’s Squawk Box on Thursday that he predicts Musk’s $44 billion offer to acquire Twitter will go through — and that it will ultimately go in Musk’s favor.
“I happened to watch [Musk] forever, and I think this guy’s a Teflon man,” O’Leary said. “And he can obviously multitask. I bet on him in this deal. When all these things are over, I think he will have a good result.”
Musk, who has a net worth of $219.1 billion as of Friday afternoon, has been embroiled in a legal battle with Twitter’s board of directors over a proposed takeover bid since April. The battle over Musk’s attempt to go out of business after initially agreeing to buy the social media platform for $54.20 per share reached a new escalation this week when Musk said he wanted one Avoid litigation by going back to his original business.
Twitter refused to comply, and a Delaware judge ruled that Musk has until Oct. 28 to complete the acquisition if he wants to avoid a lawsuit.
O’Leary predicted that Musk will indeed take ownership of Twitter once the dust settles and said he believes the Tesla CEO will significantly improve the social media platform’s user experience once he assumes responsibility took over. Currently, Twitter is falling behind, O’Leary said: many users are no longer posting to it regularly, and it’s falling in popularity as video content emerges on other platforms.
“It’s a terrible company,” O’Leary said. “I also use the platform and compare the metrics to everyone else [social media companies] including Tiktok and LinkedIn and Instagram and Facebook. It’s the worst when it comes to getting your message out.”
In the fourth quarter of last year, Twitter averaged 217 million daily users, according to Twitter’s 2021 Annual Report. For comparison, Meta’s platforms combined had an average of 1.93 billion users as of December 2021.
O’Leary said he thinks Musk is overpaying 40% on the deal, but added that the inflated figure could be worth it: By owning Twitter, Musk could use his influence and popularity on the platform to promote his to financially benefit other companies like Tesla and SpaceX.
“[Tesla] is the only auto company in the world that doesn’t pay for advertising,” said O’Leary. “He [advertised] it on the back of Twitter and other social media platforms. Very few people can own their own unregulated network.”
Disclosure: CNBC owns exclusive off-network cable rights to Shark Tank.
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