When It Comes to Taking Over Twitter, Elon Musk Appears to Have All the Cash He Needs

When It Comes to Taking Over Twitter, Elon Musk Appears to Have All the Cash He Needs

According to various sources, Elon Musk has raised the finances necessary to acquire Twitter and is considering making the offer directly to shareholders.

According to Securities and Exchange Commission (SEC) records posted on April 20, Musk secured $46.5 billion to fund his offer of $54.20 per share.

“If our bid for Twitter is successful, we will defeat spam bots or perish trying!” Musk tweeted Thursday. “And verify the existence of all genuine humans.”

According to SEC filings, Musk will finance the offer with the assistance of numerous banks, which will supply him with debt to finance the transaction. According to The Wall Street Journal, Tesla’s chief executive officer would contribute $21 billion in cash and get an extra $25 billion in loans from banks including Morgan Stanley, Bank of America, and Barclays.

“The Reporting Person desires to negotiate a definitive deal for the Reporting Person’s acquisition of Twitter and is willing to initiate such negotiations immediately,” the document stated.

Musk will pledge $62.5 billion, or one-third of his Tesla stock, as collateral for the bank loans, according to the WSJ. Musk will very certainly have to sell a big percentage of his stock in his numerous enterprises, including SpaceX and Boring, in order to raise the required $21 billion in cash.

The Twitter board of directors is set to reject Musk’s unsolicited bid after using the “poison pill” to thwart Musk’s attempt to acquire the firm, according to the WSJ. Musk is prohibited from owning more than 15% of the firm, and the poison pill allows investors to purchase shares at a discount, lowering the value of Musk’s ownership.

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