April 22, 2022
Tesla CEO Elon Musk has secured a $46.5 billion financing commitment to acquire Twitter. According to a filing with U.S. regulators, the billionaire is also considering starting a tender offer for the company’s outstanding shares.
To finance the transaction, Musk will put up $$33.5 billion which will include $21 billion in equity abs $12.5 billion of margin loans against some of his Tesla shares.
“As previously announced and communicated to Mr. Musk directly, the board is committed to conducting a careful, comprehensive, and deliberate review to determine the course of action that it believes is in the best interest of the company and all Twitter stockholders,” a Twitter representative said.
Musk had previously offered to buy all of the remaining shares on Twitter in a bid valuing the company at $43 billion. According to Musk, the company needed to be transformed into a private company to become “the platform for free speech around the globe.”
Twitter moves to thwart Musk’s takeover attempt with a “poison pill.” A poison pill is a financial device that companies use against unwelcome suitors.
The Sources for this piece include an article in Reuters.
