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New SEC Filing Details How Elon Musk Is Pooling Funds For Twitter Purchase
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New SEC Filing Details How Elon Musk Is Pooling Funds For Twitter Purchase
Musk said that he's "exploring whether to commence a tender offer to acquire all of the outstanding shares."
The Lede
Musk previously tried to purchase Twitter with an offer of $54.20 per share, in cash, which would have valued the bird app at around $43.4B — but the company hasn't responded to his offer. Twitter opted for a "poison pill" approach instead to block his takeover. A new SEC filing indicates how Musk could secure the funds to get this deal done. He intends to borrow a large sum, outright and against his own equity holdings, and further use his holdings to secure the total amount. Here are the details.
Key Details
- One tranche shows that Morgan Stanley and other financial institutions have "committed to provide $13 billion in financing" via a series of split-up loans.
- TechCrunch reports that Morgan Stanley and others have also said they'll provide $12.5 billion in margin loans against Musk's shares in Tesla and other companies.
- Musk has also put forth an "equity commitment letter" which is worth roughly $21B, according to the filing.
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