There’s a chance Silicon Valley Bank can make a comeback. Elon Musk, CEO of both Twitter and Tesla, has dropped (1) hints that the social media giant may acquire the troubled Silicon Valley Bank.
In light of the current situation, Min-Liang Tan suggested (2) on Twitter that the company acquire SVB and transform itself into a digital bank.
Tan is not just a co-founder but also the head honcho at gaming PC manufacturer and retailer Razer.
In response to Tan’s tweet, Elon Musk wrote:
I’m open to the idea
— Elon Musk (@elonmusk) March 11, 2023
All of Silicon Valley Bank’s assets were seized by US authorities on Friday, and the bank was subsequently closed.
Bank Collapse in Silicon Valley Sends Shockwaves Across Financial Markets
Companies and investors lost billions of dollars due to the move, which made SVB the largest retail bank to fail since 2008.
Thursday night, the bank announced that it would be raising capital, and by Friday morning, the stock had dropped.
‘What an opportunity!’ wrote one Twitter user in support of Musk’s plan. Sanjay, though, chimed up with, “And sell another $20 billion in Tesla stock. I’d rather not!
Twitter posts from Elon Musk can have a major effect on the value of stocks and cryptocurrencies and the public perception of his businesses.
The billionaire’s tweets often receive extensive media coverage, and his opinions can lead to significant shifts in the value of stocks and cryptocurrencies.
His tweets can shape how people view his businesses like Tesla and SpaceX.
Some have criticized Musk’s use of Twitter to announce statements or offer opinions that may not be adequately studied or balanced, which is why his tweets have also been criticized.
The fall of SVB, experts warn, may not be an outlier
Similarly, New York SVB shares dropped 60 percent before the trade was halted when California regulators confirmed the bank’s liquidation.
SVB was shut by the CSFPI, which then designated the FDIC as a receiver.
Analysts say clients and shareholders should brace themselves for the next domino to fall after the sudden collapse of SVB, a four-year-old American institution and a foundation of the internet startup sector.
SVB CEO Greg Becker mentioned in a video address to employees that he is engaging with monetary authorities “to locate a partner for the bank.” But, he stressed that there is no guarantee that a compromise can be achieved.
News articles claim (3) that SVB, the 16th biggest bank in the United States with 17 locations in California and Massachusetts, catered mostly to the technology sector and venture capital-backed businesses, including some of the most well-known names.
Trying to Find a Solution to Save SVB
Reuters, citing Bloomberg News, said on Saturday that SVB Securities administrators are looking into ways to purchase the failing lender back from Silicon Valley Bank.
A report citing people who know more about the matter states that SVB Securities CEO Jeff Leerink and his team are looking for money for a potential management buyout of the company.