Elon Musk Secures $46.5 Billion in Funding for Twitter Purchase

The billionaire has been making headlines with his moves toward greater ownership in the social media platform.

QUICK FACTS:
  • Tesla Chief Executive Officer Elon Musk has secured $46.5 billion in funding to purchase twitter and take it private, according to a new regulatory filing.
  • The documentation shows that Musk has received a commitment to assist in financing his proposed deal with Twitter, possibly in the form of a tender offer.
  • Musk has secured $25.5 billion in debt financing from Morgan Stanley Senior Funding as well as Bank of America, Barclays, and Mizuho, in addition to several others.
  • The richest man in the world has also committed $21 billion of his own money in equity financing, according to the document.
MORE ON THE OFFER:
  • A tender offer is a proposal that goes directly to investors in a publicly-traded company, offering to buy shares at a specific price and time. 
  • In the case of Musk’s offer, he is looking to negotiate a “definitive agreement” with the board, but if that fails, he is contemplating a deal with members to purchase outstanding shares at a price of $54.20 per share.
  • As of early afternoon on April 21, Twitter Inc was trading at $47 for a single share. 
BACKGROUND:
  • Musk originally made a bid to buy Twitter on April 14 to take the social media company private. His offer was $43 billion in cash which would equate to $54.20 per share.
  • The firm’s board of directors adopted their so-called “poison pill” defense to fend off a hostile takeover the next day. This move came just days after news broke that on April 4 that Musk bought 73.5 million Twitter shares, or 9.2 percent of the firm. 

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