Friday, May 20, 2022
HomeSocial MediaTesla chief Elon Musk secures $46.5 billion funding to buy Twitter, may consider buying...

Tesla chief Elon Musk secures $46.5 billion funding to buy Twitter, may consider buying stocks directly from shareholders

Elon Musk is considering funding up to $33.5 billion on his own, including $21 billion of equity and $12.5 billion of margin loans against some of his Tesla Inc shares to invest in Twitter.

On Thursday, billionaire inventor-investor Elon Musk said he has secured $46.5 billion in financing to fund his Twitter takeover bid. According to reports, Elon Musk has lined up $46.5 billion in debt and equity financing to buy Twitter Inc. The billionaire investor is also considering buying shares directly from shareholders.

Elon Musk is considering funding up to $33.5 billion on his own, including $21 billion of equity and $12.5 billion of margin loans against some of his Tesla Inc shares to invest in Twitter.

According to the filing on Thursday, Musk is also considering a tender offer to buy all company stock from shareholders but has not taken any decision. The filing revealed that a group of banks led by Morgan Stanley is prepared to lend Musk $25.5 billion.

On April 14, in a surprise bid, Elon Musk offered $43 billion to Twitter Inc to buy the micro-blogging site. However, Twitter did not respond and instead adopted a “poison pill” to thwart his bid.

To counter the “poison pill”, Elon Musk has developed a new plan to acquire all of the social media company’s shares from current stockholders.

Musk, currently Twitter’s second-largest shareholder with a 9.1% stake, has promised to bring significant changes to the micro-blogging site and has also announced his intentions of making the platform open and private. Vanguard funds, an American investment advisor registered in Malvern, Pennsylvania, is Twitter’s highest shareholder.

Twitter also acknowledged that they have received Musk’s latest proposal.

“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 spokesperson said in a statement.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staff
OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

Related Articles

Trending now

Recently Popular

- Advertisement -

Connect with us

255,564FansLike
588,914FollowersFollow
26,500SubscribersSubscribe