Baron’s $100 Million Investment in Musk’s Twitter Deal Pays Off
By Billionaire investor Ron Baron has invested $100 million in Elon Musk's Twitter deal. Baron's decision to invest in the platform was based on his long-standing faith in Musk's leadership abilities and his marketing expertise. Musk's public outreach has been immense, gaining over 128 million followers on Twitter.[0]
When asked about the investment, Baron told CNBC that he was promised to make “two to three times” his money when he invested a further $100 million after Musk's acquisition in late 2022.[1] He explained that his decision was influenced by his portfolio's past success because of Musk's ventures, the marketing techniques he employs, and the fact that the business had been poorly managed under previous management.[1]
Musk's takeover of Twitter has been a difficult process, with the company executing mass layoffs and revoking a long-standing work-from-home policy.[2] This was in addition to the multiple lawsuits filed against Twitter for failing to pay bills, including private jet bills and rent at its San Francisco headquarters.
Despite the challenges, Musk recently tweeted that the company is “now trending to breakeven.”[3] Baron himself commented on Musk's ability to market a car without spending a penny, because of the reach he has. He also noted that he was not yet an expert on Twitter, but that the company was “incredibly poorly run” when they made the investment.[1]
Cramer, in response to Baron's investment, noted that Tesla's insider selling was good and that Baron might come on air soon to say the stock was worth $1,000. Baron's faith in Musk appears to have paid off, and other investors may soon follow his lead.
0. “Billionaire investor and Tesla bull Ron Baron poured $100 million into Elon Musk's Twitter takeover” Yahoo Canada Finance, 7 Feb. 2023, https://ca.finance.yahoo.com/news/billionaire-investor-tesla-bull-ron-184328481.html
1. “Tesla’s biggest bull has $100M in stock of Musk’s newest venture: Twitter” TESLARATI, 7 Feb. 2023, https://www.teslarati.com/tesla-ron-baron-twitter-twtr-investment-100m/
2. “Billionaire Tesla bull Ron Baron says Musk promised him multiples on his $100 million Twitter investment” CNBC, 7 Feb. 2023, https://www.cnbc.com/2023/02/07/ron-baron-promised-multiples-on-100-million-twitter-investment.html
3. “Billionaire Ron Baron poured $100M into Elon Musk's Twitter takeover” Markets Insider, 7 Feb. 2023, https://markets.businessinsider.com/news/stocks/twitter-elon-musk-tesla-bull-ron-baron-billionaire-investor-deal-2023-2
