Elon Musk Has The Financing To Take Over $46 Billion Twitter, The Movie Show

Elon Musk has secured commitments worth about $46.5 billion for a possible takeover of Twitter, according to a new filing with the Securities and Exchange Commission. That debt includes about $25.5 billion in debt from Morgan Stanley and other institutions, of which Musk provided the rest as equity commitments.

There is still no guarantee that the deal will pass, despite Musk’s previous submissions of $43 billion in proposals and the possibility that he could pursue a hostile takeover with the company.

Twitter has sought to prevent Musk from accumulating a controlling stake. Last week, they passed a so-called “poison pill”, which would make it extremely difficult for any party to accumulate more than 15% of its shares without the involvement of the board. . Musk currently has a 9.2% stake.

In recent days, the billionaire has hinted that he may seek to buy large amounts of shares directly from other shareholders, in a move known as a public offering. On Saturday he tweeted The lyrics of “love you tenderly”, once again sent the social platform into a frenzy.

There are reasons to question whether the deal will work, or how serious Musk is with his offer. The logistics will be complicated, and Musk’s initial bid is $54.20 per share, a number that conspicuously includes the cannabis reference “420.”

In 2018, Musk famously tweeted that he had secured the capital to own his electric car maker, Tesla, at $420 per share. The deal never happened and Musk was, in fact, forced to settle allegations of fraud with the SEC over the matter, costing him a $20 million fine and the role of Tesla’s chairman, among other fines. other penalties.

Billionaire Marc Cuban last week speculated that, in making his offer to buy Twitter, Musk was simply “making love to the SEC.”

However, Twitter executives have certainly been wary. The company issued the poison pills after Musk threw them into a private loop by abandoning plans to join the company’s board at the last minute.

“Elon’s appointment to the board will officially take effect on September 4, but Elon shared on the morning of the same day that he will no longer be on the board,” Twitter CEO Parag Agrawal wrote. in the notice of the change. “I believe this is for the best.”

Now, instead of dealing with Musk as a peer, the board is likely to have to prop him up as a strong and unpredictable opponent.

https://www.thedailybeast.com/elon-musk-has-the-financing-for-a-dollar46-billion-twitter-takeover-filings-show?source=articles&via=rss Elon Musk Has The Financing To Take Over $46 Billion Twitter, The Movie Show


Hung is a Interreviewed U.S. News Reporter based in London. His focus is on U.S. politics and the environment. He has covered climate change extensively, as well as healthcare and crime. Hung joined Interreviewed in 2023 from the Daily Express and previously worked for Chemist and Druggist and the Jewish Chronicle. He is a graduate of Cambridge University. Languages: English. You can get in touch with me by emailing: hung@interreviewed.com.

Related Articles

Back to top button