Elon Musk will have to pay interest of $ 1 billion / year if borrowed money to buy Twitter
On April 21, the CEO of Tesla revealed that he had received offers from several banks to provide credit for the acquisition of Twitter. Specifically, Morgan Stanley, Bank of America Corp. offered a loan of $13 billion for Musk to do the deal. Another $12.5 billion loan was also offered as collateral for the $62.5 billion Tesla shares Musk owns — about a third of his company’s shares. are holding.
Musk also said he would spend $21 billion out of his own pocket for the deal. Thus, the richest billionaire in the world is ready for financial options with 46.5 billion USD to buy back Twitter. According to Bloomberg, based on the amount of money Mr. Musk borrowed, he will probably have to pay interest about $ 1 billion per year.
Analysts said that Mr. Musk does not seem to care much about Twitter’s basic profits, but will focus on freedom of speech and content moderation on the social networking platform. According to Bloomberg, if Twitter’s profits drop, Musk may have to use his own money to pay this interest.
Mr. Musk said at TED 2022: “I can basically afford this deal. However, this is not the way to make money.” Musk also added that he is not interested in economics, but wants to develop a reliable and widely inclusive public platform.
On April 14, billionaire Elon Musk made an offer to buy Twitter for $43 billion and take the company private. Musk said he would pay $54.2 per share of Twitter in cash. Although since making Musk’s offer to buy Twitter, the company’s stock price has increased by 20%, but it is still below the price offered by the Tesla CEO.
When announcing his offer to buy the social platform, Musk said he would be the one to unleash the “extraordinary potential” of this social network with more than 200 million daily users.
Source: Bloomberg
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