Billionaire Ron Baron was promised he would make “two to three times” his cash when he invested $100 million in Tesla CEO Elon Musk’s take-private deal for Twitter, Baron mentioned Tuesday on CNBC’s “Squawk Box.”
Baron has lengthy been bullish on Tesla, telling CNBC’s Becky Quick that Musk made Baron “$5 billion so far, on a $400 million investment.” In 2021, the billionaire investor informed CNBC that he held nearly 6 million Tesla shares by his funding agency, Baron Capital. Baron’s $100 million Twitter funding was predicated on his longtime religion in Musk as an govt and in his advertising and marketing experience.
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“I don’t want to talk more about Twitter, because I’m not the expert on it yet, but he explained when we made our investment that he saw that there was a lot of cost there, it was incredibly poorly run,” Baron mentioned Tuesday.
Musk’s acquisition of Twitter has been fraught and, by Musk’s personal acknowledgment, “extremely tough.” Shortly after Musk closed his $44 billion acquisition of Twitter in late 2022, the corporate executed mass layoffs, revoked a “forever” work-from-home coverage, and been taken to court docket a number of instances for failure to pay payments, together with personal jet payments and hire at Twitter’s San Francisco headquarters.
On Sunday, Musk mentioned that Twitter was “now trending to breakeven.” Baron wasn’t shaken by Twitter’s obvious shut shave with chapter.
“He’s the best-known man in the world, I guess,” Baron mentioned. “Everyone else spends $1,000 to market a car, he spends nothing, because everyone knows Twitter.”
“He spends nothing because everyone knows who he is,” Baron continued.
Source: www.cnbc.com