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HomeNewsBusinessMusk claims to have $46.5 billion in funding for his bid for...

Musk claims to have $46.5 billion in funding for his bid for Twitter

Elon Musk said Thursday he provided $46.5 billion in debt and equity financing to buy Twitter, and is considering making a direct offer to shareholders, according to U.S. regulatory filings. Musk himself pledged to raise a portion of Tesla Inc’s stake, raising $33.5 billion, including $21 billion in equity and a $12.5 billion margin loan. He is the CEO of electric car maker Tesla. Musk, the world’s richest person according to a Forbes tally, presented Twitter’s board with a “best and final” cash offer of $43 billion on April 14 to help the social media company grow. , said it must be privatized to become a platform.

Tesla shares are up more than 3% of his, and Musk’s value of his 172.6 million Tesla shares rose more than $5 billion on Thursday after a strong earnings call. On Wednesday, he became eligible for stock option compensation now worth about $24 billion after Tesla hit its profit and earnings targets. It is unclear if Musk will sell Tesla shares to finance the $21 billion financing. According to the margin loan pledge, Musk can “sell, dispose, or transfer” unencumbered Tesla stock at any time.

However, Twitter did not respond to his offer and took a “poison” to thwart him. Musk is also considering a takeover offer to buy all of the company’s shares from shareholders, but has yet to make a decision, according to documents filed Thursday. Musk, Twitter’s second largest shareholder with his 9.1% stake, said he could make big changes at the microblogging company, which has a following of more than 80 million users. His shares on Twitter rose less than 1% following the funding news, suggesting the market is still skeptical of the deal.

Banks, including Morgan Stanley, have agreed to provide an additional $13 billion in debt, collateralized by Twitter itself, the filing said. A Twitter spokesperson confirmed that the company accepted Mr. Musk’s offer.
“As previously announced and communicated directly to Mr. Musk, the Board will use a prudent, comprehensive and prudent course of action to determine a course of action that it believes is in the best interest of the company and all Twitter shareholders.

“They will have a hard time ignoring it,” said Josh White, an assistant professor of finance at Vanderbilt University and a former Securities and Exchange Commission financial economist. We will either find them or pressure them to negotiate with Musk.” To increase his worth and remove the poison. “

We are committed to conducting a review,” the representative said in a statement. Ryan Jacob, chief investment officer of Jacob Asset Management, which owns a Twitter stake, said Mr. Musk’s latest filing will prompt a response from Twitter’s board. “We should have considered the seriousness of the proposal, and this submission allows us to do that,” he said.

News Summary:

  • Musk claims to have $46.5 billion in funding for his bid for Twitter
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