After selling Tesla shares, billionaire Elon Musk wants to borrow more money to buy Twitter

Billionaire Elon Musk is in talks with large-scale investors to raise more capital for the acquisition of social networking platform Twitter.

Reuters reports, billionaire Elon Musk is in talks with large-scale investors such as private equity firms, hedge funds and individuals with large net worth to provide preferred equity ( preferred equity) for the $44 billion acquisition of Twitter.

The source said Apollo Global Management Inc and Ares Management Corp are two of the private equity firms that are negotiating with Mr. Musk. If there are more loans, the amount of out-of-pocket that the Tesla CEO has to pay for the plan will decrease.

Billionaire Elon Musk. Photo: Bloomberg

Earlier, the world’s richest man registered was selling a large number of Tesla shares, allegedly also to prepare to pay for the purchase of Twitter.

Specifically, filings at the US Securities and Exchange Commission (SEC) show that billionaire Elon Musk registered to sell a total of 4.4 million Tesla shares on April 26 and 27, worth about $ 4 billion. Then on April 28, he registered to sell another 5.2 million shares, bringing the total value to about $8.5 billion.

These moves have caused Tesla’s value on the stock exchange to drop by $275 billion from a month earlier. However, the share price rose 3.2% in the trading session on April 29.

In addition, billionaire Musk is also in talks with some major Twitter investors about the possibility of converting shares to contribute to the deal instead of withdrawing cash. The source revealed that co-founder Jack Dorsey is considering this possibility. Despite leaving the CEO position, he remains on the Twitter board.

According to GizChina, billionaire Elon Musk has raised about $46.5 billion to fund the purchase of Twitter, 18% more than the amount needed to buy a 90.8% stake in the company and within the range of the company. Musk’s control. Of that, third-party investors lent Musk $25.5 billion of this amount, while he had an additional $12.5 billion thanks to underwriting shares in Tesla.

If this deal fails, the head of Tesla will have to pay Twitter shareholders a fine of $ 1 billion. However, if the deal falls through due to Twitter’s fault, billionaire Musk will also receive the same compensation.