World¡¯s richest person Elon Musk said yesterday that he has lined up funding of $46.5 billion in debt and equity financing to buy Twitter.?
The Tesla CEO said he is considering taking his offer directly to shareholders, a filing with U.S. regulators showed, as per Reuters.
Elon Musk himself has committed to putting up $33.5 billion, which will include $21 billion of equity and $12.5 billion of margin loans against some of his Tesla shares to finance the transaction.?
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Also, it remains unclear whether Musk would sell shares in Tesla to cover the $21 billion equity financing.?
Banks, including Morgan Stanley, have reportedly agreed to provide another $13 billion in debt secured against Twitter itself, according to the regulatory filing.
Shares of Twitter rose less than 1% on news of the funding, indicating that the market is still sceptical about the deal, as per Reuters.??
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A spokesperson for Twitter had acknowledged receipt of Musk's proposal and said in a statement "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."?
Last week Musk had reportedly presented a ¡®best and final¡¯ cash offer of $43 billion to Twitter's board of directors, saying that Twitter needs to be taken private to grow and become a platform for free speech.
But Twitter did not accept the offer and instead adopted a ¡®poison pill¡¯ strategy to thwart him.?
It's reported that Musk is also considering a tender offer to buy all company stock from shareholders but has not yet decided whether to do so, according to the filing yesterday.
Elon Musk had also said that he could make big changes on Twitter, where he has a following of more than 80 million users.
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