Elon Musk’s Startups Could Be Silver Lining for Bankers Burned by Twitter Deal

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Wall Street’s most prominent investment banks will lose lucrative fees as Elon Musk leaves his $44 billion (roughly Rs. The purchase of Twitter Inc by Musk for 3,52,400 crore is a sign that the start-ups supported by the richest man in the world will make up the difference. Musk, who has paid out close to $500 million (roughly Rs. According to Refinitiv, this figure is approximately 4,000 crore in fees paid to investment banks like Morgan Stanley and Goldman Sachs Group Inc since 2000. This was mostly for work on Tesla Inc.

This estimate does NOT include Musk’sStart-ups privately owned SpaceX, Neuralink The Boring Company. According to bankers, these companies have received tens of million dollars in investment banking fees revenue over the years for capital raisings.

Musk spoke to the bankers on condition that they not be identified about their business prospects. They said they would pursue these opportunities, including any roles in initial public offerings.

Morgan Stanley and Goldman Sachs didn’t immediately respond to our request for comment.

An earlier regulatory filing states that Twitter’sFees of approximately Rs. 133 million would be paid to JPMorgan Chase and Goldman Sachs as financial advisors. 1,100 crore).

Refinitiv estimates that Morgan Stanley, along with other financial advisors, will earn more than $55million (roughly Rs. 440 crore) for advising Musk. While the banks that provide acquisition financing could receive between $150 million and Rs. 1,200 crore) and $200 million (roughly R. 1,600 crore).

Musk has not been the only banker to be disappointed by him in an acquisition. Musk also abandoned his plans to privatize Tesla for $72 billion, roughly Rs. After publicly declaring that he had secured the funding, he decided to cancel his plan to take Tesla private for $72 billion (roughly Rs. 5,772,000 crore).

SpaceX was last valued at $125Billion (roughly Rs. It is one of the most highly valued private companies worldwide, with a value of $125 billion (roughly Rs. According to IPO bankers as well as lawyers, it is expected to go public for a significantly higher value.

SpaceX did not respond immediately to a request for comment.

Banks will not lose the fees, but that is what we know for certain. Twitter has filed suit against Musk in Delaware to force him into the agreement.

© Thomson Reuters 2022


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