Elon Musk Secures $46.5 Billion to Buy Twitter
Elon Musk files an SEC document proving he has secured $46.5 billion in funding to purchase Twitter. The move comes after the social media company's board fails to respond to his initial buyout offer.
Elon Musk files a new document with the SEC proving that he has the funding secured to purchase Twitter. The Tesla and SpaceX CEO gathers $46.5 billion through a combination of bank loans and personal equity to take over the social media company. This formal filing prevents a repeat of his infamous "funding secured" incident from the past.
The SEC filing reveals that major financial institutions provide $26.5 billion in debt commitments, while Musk commits $21 billion in equity. Morgan Stanley leads the financing group, with Bank of America and Barclays also participating in the massive funding effort. Musk pledges his Tesla shares as collateral to help secure the bank loans.
Musk pursues this aggressive funding strategy because Twitter's board does not respond to his initial buyout offer. The filing states that Musk explores launching a tender offer to buy all outstanding shares at $54.20 per share in cash. He has not yet made a final decision on the tender offer, but the secured money puts significant pressure on Twitter to negotiate.