Elon Musk unveils $46bn financing package to fund Twitter takeover and uses Tesla as collateral
Elon Musk has unveiled his $46billion financing package to fund his takeover of Twitter – using Tesla as collateral.
The world’s richest man filed new documents with the Securities and Exchange Commission today outlining how he would seize the social media giant.
He has secured $21billion from equity financing, $13billion from Morgan Stanley in debt facilities and another $12.5billion from the bank in margin loans.
The 50-year-old billionaire also revealed he was poised to launch a tender offer for Twitter after the company ignored his acquisition offer.
He said in documents filed with the SEC he was exploring getting shares directly from shareholders but admitted he ‘has not determined whether to do so’.
The move signals Musk ramping up his commitment to seizing Twitter after weeks of back and forth between the entrepreneur and company.
The social media giant earlier this week filed its ‘poison pill’ defense with the SEC in a last ditch attempt to prevent Musk from increasing his stake in the firm further.
Musk, the world’s richest man, currently owns a 9.2 per cent stake in the tech giant and is trying to take it private with an unsolicited bid of $54.20 per share.
But its bosses have reportedly brought on Goldman Sachs and JPMorgan Chase to advise it on how to respond to his bid.
Elon Musk has unveiled his $46billion financing package to fund his takeover of Twitter – using Tesla as collateral
Twitter’s share price steadily went up on Thursday morning as the market reacted to the news
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Read more at DailyMail.co.uk