Elon Musk Secures $46.5 Billion to Buy Twitter
Elon Musk locks down massive financing to purchase Twitter, countering the company's defensive tactics.
Elon Musk secures $46.5 billion in financing to purchase Twitter, relying heavily on borrowed money to fund the massive deal. A group of banks led by Morgan Stanley agrees to lend him $25.5 billion, which includes a $12.5 billion loan backed by his Tesla shares.
Musk personally contributes $21 billion in equity to complete the proposed $43 billion takeover. As Twitter's largest individual shareholder with a 9 percent stake, he makes this aggressive financial move after the social media platform adopts a "poison pill" strategy to block his initial hostile takeover attempt.
To bypass this defensive measure, Musk explores a tender offer to buy shares directly from current stockholders. The market reacts modestly to the news, with Twitter stock rising about 1 percent to $47 a share.