Musk’s Twitter takeover plan: $25.5 bn in loans, $21 bn in personal equity

Tesla CEO Elon Musk on Thursday revealed his ambitious plan for the Twitter takeover that will see $25.5 billion in loans and $21 billion in personal equity — taking the final bid to $46.5 billion.

In a fresh filing with the US Securities and Exchange Commission (SEC), Musk said that the funding is provided through two debt commitment letters from Morgan Stanley Senior Funding, in which the bank commits to offering a series of loans worth $25.5 billion.

The remaining $21 billion will be managed by Musk on his own, reports The Verge.

“Notably, the filing does not list any equity partners to share the cash burden with Musk,” the report said.

The filing also made it clear that Twitter has not formally responded to Musk’s offer.

“The Reporting Person is seeking to negotiate a definitive agreement for the acquisition of Twitter by the Reporting Person and is prepared to begin such negotiations immediately,” read the new filing.

A Twitter spokesperson said the company has received Musk’s offer and said it would conduct a “careful, comprehensive” review, the report noted.

“We are in receipt of the updated, non-binding proposal from Elon Musk, which provides additional information regarding the original proposal and new information on potential financing,” the spokesperson said.

Musk, who had disclosed ownership in Twitter in a filing with the SEC earlier this month, has a 9.1 per cent ownership stake in the platform, which is worth over $3 billion currently.

The billionaire is willing to pay $54.20 per share to buy 100 per cent of the company.

Twitter has announced that its Board of Directors has unanimously adopted a limited duration shareholder rights plan following an unsolicited, non-binding proposal to acquire Twitter by Musk.

Musk also tweeted “Love Me Tender”, an Elvis Presley song, after Twitter adopted ‘poison pill’ strategy to prevent him from forcefully buying the platform.

20220421-214402

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here