Elon Musk claims to have $46.5 billion in funding to buy Twitter

Elon musk news buy twitter

Elon Musk claims to have secured $46.5 billion in finance to purchase Twitter and is attempting to reach an agreement with the firm.

Musk announced an offer to buy the social networking business for $54.20 per share, or approximately $43 billion, last week. He did not specify how he planned to fund the acquisition at the time.

In filings filed with U.S. securities authorities on Thursday, Tesla CEO Elon Musk stated that he is considering a tender offer to buy all of the social media platform’s common stock for $54.20 per share in cash. Musk, who owns approximately 9% of Twitter shares, would make his offer directly to other shareholders, bypassing the board, under a tender offer.

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But Musk hasn’t chosen whether or not to do so.

According to the documents, San Francisco-based Twitter Inc. has yet to respond to Musk’s proposition.

Twitter’s board of directors adopted a “poison pill” defense this week, which may make a takeover attempt prohibitively expensive.

“Entities associated to (Musk) have obtained commitment letters pledging to provide an aggregate of about $46.5 billion,” according to the petition.

Morgan Stanley and other financial firms would provide the funding. Some would be secured by Musk’s stake in Tesla, the electric car and solar panel manufacturer.

According to the filings, Musk “is aiming to negotiate a definitive agreement for the acquisition of Twitter… and is prepared to initiate such negotiations immediately.”

Musk would use a tender offer to try to persuade other shareholders to promise their stock to him at a specific price on a specific date. Musk might use this as leverage to get the board to remove the poison pill defense if enough shareholders agree.

Musk hinted to a tender offer many times this week in tweets that used the word “tender”

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