By: Konrad Holden
In a filing with the Securities and Exchange Commission on Thursday, Elon Musk showed that he has secured more than $46 billion to purchase Twitter, Inc. and take the company private. The funding comes from $21 billion of Musk’s own assets and funding from various banks including Morgan Stanley. Musk plans to bypass Twitter’s board and purchase the remaining stock directly from shareholders.
Elon Musk, tech CEO and the richest man in the world according to Forbes, has shown his interest in purchasing Twitter, Inc since early April. After purchasing over 9% of the company, Musk has secured the financing he needs to purchase the rest of the company.
$13 billion comes from large banks like Morgan Stanley, Barclays, Bank of America, and others. $21 billion will come either “directly or indirectly” from Musk. The final $12.5 billion comes from loans secured by his Tesla stock.
An analyst for Wedbush Securities in Los Angeles said, “Banks were going to line up for this deal from the richest person in the world. The fact that they pulled it together this quick shows that Musk isn’t joking around. This is a real bid.”
Twitter’s board is currently taking a “poison pill” approach that would up the price of the stock and make Musk’s final cost much higher in an attempt to price him out of a purchase.
“This isn’t just Musk antics. Banks were going to line up for this deal from the richest person in the world. The fact that they pulled it together this quick shows that Musk isn’t joking around. This is a real bid.” - Daniel Ives, financial analyst