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Elon Musk Secured $46.5 Bn In Funding For Twitter Bid
(CTN News) – Tesla Inc CEO Elon Musk claims to have secured $46.5 billion in funding to purchase Twitter and is currently negotiating a deal with the company. Last week, Musk made an offer to buy the social networking company for $54.20 per share, or $43 billion. The Associated Press (AP) reported that he at the time did not specify how he planned to pay for the purchase. Tesla CEO Elon Musk is considering making a tender offer to buy all of the social media platform’s shares for $54.20 per share.
Elon Musk, who owns roughly 9% of Twitter, would tender his stock to other shareholders rather than go through the board. According to a new SEC filing, Morgan Stanley would lend Musk over $20 billion in various loans. Forbes reports that a total of $21 billion will be raised through stock financing. Musk hasn’t made a formal bid for Twitter yet, but now that he’s disclosed additional details about how he plans to finance the purchase, it might happen soon.
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Elon Musk is yet to hear from Twitter about his proposed deal
Forbes estimates Musk’s fortune to be worth over $260 billion, but nearly all of it is invested in Tesla stock and other illiquid assets. According to the report, he may have to borrow money or sell Tesla stock to make the deal work. Elon Musk says he has not heard from the board of Twitter since announcing his $54.20 per share proposal a week ago. Twitter has retained Goldman Sachs and JPMorgan while Elon Musk has retained Morgan Stanley.
Elon Musk purchased a huge 9.2% stake in Twitter this month
Forbes reports that no one is mentioned in the SEC filing except Musk. It was reported that a number of Wall Street firms, including Apollo and Thoma Bravo, were interested in financing the Twitter deal. They do not appear to be interested in joining Musk in his bid for Twitter. Musk purchased a 9.2% stake in Twitter Inc. on Monday, April 4. It came after the billionaire criticized the micro-blogging site for compromising free speech and announced that he would launch his own social network.
