FUNDING SECURED: Elon receives great news via Twitter

Shortly after Elon Musk made his $43 billion bid to take Twitter private, he admitted he might not be able to raise the money to make it happen. Well, now it appears he’s pooled the necessary funds for the acquisition.

According to Reuters, Musk has scraped together enough of his own money and found various other parties willing to provide more funding to make the offer a reality.

He will put $33.5 billion of his money into the company that Reuters reportedwill include $21 billion in equity and $12.5 billion in margin debt to fund the transaction.

The remainder of the $46.5 billion in funds will consist of $13 billion in debt provided by Morgan Stanley; That debt is being hedged against Twitter, not Musk

And Elon isn’t the only wealthy American looking to buy Twitter and take it private. According to another Reuters article, a private equity fund called Apollo Global Management is also considering an offer, although it is said to be working on either working with Musk or completing the acquisition itself. Like Reuters brings it:

Apollo Global Management Inc (APO.N) is considering opportunities to fund deals and is open to working with Musk or other bidders, the sources said. His involvement would be through its debt investment platform rather than its private equity business, the sources added.

Whether Musk would work with Apollo isn’t clear, however. If Twitter accepts its original $43 billion offer, it wouldn’t have to as it has now raised more than $46 billion in funding. If it doesn’t take up his offer, he could move on to “plan B,” as he wrote in his letter that $43 billion was his final offer, saying:

As a result, I am offering to buy 100% of Twitter for $54.20 per share in cash, a premium of 54% from the day before I started investing in Twitter and a premium of 38% from the day before my investment was made public. My offer is my best and final offer and if not accepted I would have to reconsider my position as a shareholder.

Maybe it’s just ranting, but Elon seems intent on bending Twitter to his will rather than bargaining, so it seems doubtful he’d reconsider his original language and offer an even heftier bounty than what’s already been offered.

Additionally, Elon has demonstrated a specific vision of Twitter that a for-profit private equity fund may not be willing to share. Speaking of the offer, Elon called:

This is not a way to make money. My strong intuitive feeling is that having a public platform that is maximally familiar and inclusive is extremely important for the future of civilization.

Perhaps Apollo would be willing to go along with this and accept his view of a Twitter that is more socially good than profitable, but it seems unlikely. Then again his statement that “Twitter has extraordinary potential. I’ll unlock it.” in the letter to the board could have appealed to Apollo. It seems we’ll have to wait and see; With funding secured from Elon’s side, the ball is now firmly in Twitter’s hands.

https://smartzune.com/funding-secured-elon-gets-some-great-news-about-twitter/ FUNDING SECURED: Elon receives great news via Twitter

Jake Nichol

24ssports is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@24ssports.com. The content will be deleted within 24 hours.

Related Articles

Back to top button