Elon Musk has enough money to buy Twitter
The world’s richest person said it had raised $46.5 billion for the Twitter acquisition, just a week after announcing it.
According to a document filed with the US Securities and Exchange Commission (SEC) on April 21, Musk confirmed that he had enough documents to commit capital support to buy Twitterwith $25.5 billion in loans from Morgan Stanley and a number of other financial institutions, and $21 billion out of pocket.
In the text, Musk also said that he has not received an official response from the Twitter board about his offer to buy back at $54.2 a share. The deal values Twitter at about $41 billion. He said he was “looking to negotiate” a purchase and sale agreement and was “ready to start immediately”. This contradicts his earlier claim that the original offer was “best and last”.
Tesla CEO Elon Musk. Image: AP
Recent days, How does Musk raise money? to buy Twitter was a hot topic, especially after he said in an interview that “Not sure if it’s possible to buy Twitter”.
Despite being the richest person in the world with $260 billion, most of Musk’s fortune is in Tesla shares. Some analysts say it would be difficult for Musk to get a loan with a mortgage on volatile stocks like Tesla.
In addition, although Twitter has not officially responded to Musk, they have implemented a strategy to prevent Musk from owning more than 15% of the company. Musk also said in the text yesterday that he was considering a public offering — buying Twitter shares directly from shareholders. This can put more pressure on the company’s board of directors.
Twitter shares rose 1% to $47 last Thursday, when Musk announced he wanted to buy. This is significantly lower than Musk’s asking price. This makes many investors doubt about the possibility of the deal being done.
In 2018, Musk once announced that he would privatize Tesla and posted on Twitter that he had “enough money”. This sent Tesla stock higher. However, Musk is not yet financially prepared for this deal. He was later banned by the US Securities and Exchange Commission (SEC). punish for misleading shareholders, had to pay a $20 million fine and resign as Chairman of Tesla.
Ha Thu (according to CNN)
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