Elon Musk Secures $46.5 Billion to Buy Twitter
Billionaire Elon Musk lines up $46.5 billion in bank loans and personal funds to purchase Twitter. The social media company's board is currently reviewing the unsolicited offer.
Elon Musk announces that he secures $46.5 billion to purchase Twitter and take the social media company private. Major financial institutions, including Morgan Stanley and Bank of America, pledge $25.5 billion in loans that are partially backed by Musk's Tesla shares. Musk personally covers the remaining $21 billion of the $54.20-per-share offer.
The billionaire makes this move because Twitter's board does not formally respond to his initial proposal. As a result, Musk states in a Securities and Exchange Commission filing that he is ready to negotiate immediately and is exploring a direct tender offer to Twitter shareholders.
Twitter's board responds by stating it is carefully reviewing the proposal to determine the best course of action for the company. The board previously adopts a "poison pill" defensive strategy to make it more difficult and expensive for Musk to acquire a controlling stake without their approval.