Elon Musk says he is secured cash for his bid to take Twitter non-public and is contemplating making his pitch on to shareholders.
Musk, who lately grew to become the social media firm’s largest particular person shareholder, instructed Twitter’s board final week he wished to purchase the complete firm however he did not say how he would pay for it.
Now, in a brand new submitting with the Securities and Alternate Fee, the billionaire Tesla CEO says he is lined up $46.5 billion to fund his provide of $54.20 a share.
Morgan Stanley, Financial institution of America, and several other different banks have promised to lend him $25.5 billion, in keeping with the submitting.
Musk, who’s the richest individual on this planet, says he’ll cowl the remaining $21 billion himself. Most of his wealth is tied up in shares of Tesla and SpaceX, the rocket firm he additionally runs.
Musk additionally mentioned in his submitting that Twitter has not formally responded to his overtures. He “is searching for to barter a definitive settlement for the acquisition of Twitter,” the submitting mentioned, “and is ready to start such negotiations instantly.”
Given the dearth of response, the submitting mentioned, Musk is exploring whether or not to go on to Twitter traders with a young provide to purchase their shares for $54.20 a chunk.
Twitter launched a press release on Thursday saying the board has acquired Musk’s proposal and “is dedicated to conducting a cautious, complete and deliberate assessment to find out the plan of action that it believes is in the very best curiosity of the Firm and all Twitter stockholders.”
The board already has thrown hurdles in Musk’s path. It has adopted a defensive measure referred to as a “poison capsule” to fend off Musk and provides administrators extra time to think about what to do.
Formally referred to as a shareholder rights plan, the poison capsule would make it costlier for Musk, who owns 9% of the corporate, or anybody else to extend their stake to fifteen% or extra. It is designed to keep at bay hostile strikes like making a young provide on to shareholders.
But when sufficient shareholders discover Musk’s bid engaging, they might stress the board to do away with the poison capsule and attain a cope with the billionaire.
Twitter shares have been down lower than 1 % on Thursday morning.