Ron Baron promised multiples on $100 million Twitter funding

Billionaire Ron Baron was promised he would make “two to a few instances” 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 Field.”

Baron has lengthy been bullish on Tesla, telling CNBC’s Becky Fast that Musk made Baron “$5 billion thus far, on a $400 million funding.” In 2021, the billionaire investor advised 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 government and in his advertising experience.

“I do not need to speak extra about Twitter, as a result of I am not the skilled on it but, however he defined after we made our funding that he noticed that there was a variety of value there, it was extremely poorly run,” Baron mentioned Tuesday.

Musk’s acquisition of Twitter has been fraught and, by Musk’s personal acknowledgment, “extraordinarily powerful.” Shortly after Musk closed his $44 billion acquisition of Twitter in late 2022, the corporate executed mass layoffs, revoked a “without end” work-from-home coverage, and been taken to courtroom a number of instances for failure to pay payments, together with personal jet payments and lease 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 is the best-known man on the earth, I assume,” Baron mentioned. “Everybody else spends $1,000 to market a automobile, he spends nothing, as a result of everybody is aware of Twitter.”

“He spends nothing as a result of everybody is aware of who he’s,” Baron continued.