Elon Musk has set up the funds needed to buy Twitter.
All of it.
And on Wednesday, Musk unveiled his plan for a $46.5 billion loan that would allow him to round up Twitter’s total purchases, in filing with the US Securities and Exchange Commission (SECOND).
Notably, it turned out that Musk himself covered only $21 billion from the prospective purchase – with the remaining $25.5 billion covered by a series of loans from Morgan Stanley Senior Funding.
But it appears Musk has yet to enlist an equity partner to help him bear the financial burden of not just a $21 billion, or even a larger $25.5 billion loan.
At the time of writing, the CEOs of SpaceX and Tesla already own 9 percent of Twitter shares – collectively worth about $2.9 billion.
One way or another, the game is on.
Twitter is conducting a ‘careful and comprehensive’ review of Elon Musk’s offer
In the filing, it is explicitly stated that Twitter has not yet provided an official response to its offer: “Whistleblower is seeking to negotiate a definitive agreement for the Complainant’s acquisition of Twitter,” the filing said, “and is prepared to commence such negotiations immediately.”
While no official answer has been provided so far, a Twitter spokesperson said they had accepted Musk’s proposed purchase, and were conducting a “careful and comprehensive” review. “We received an updated and non-binding proposal from Elon Musk, which provides additional information regarding the original proposal and new information regarding the original proposal and new information about potential financing,” the spokesperson added, according to the statement. preliminary report from The Verge.
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“As previously announced and communicated directly to Mr Musk, the Board is committed to conducting a careful, comprehensive and deliberate review to determine actions it believes are in the best interests of the Company and all Twitter shareholders,” the spokesperson said. added.
Musk defends his position as ‘absolute free speech’
The winding story of Musk buying Twitter has veered into new economic, social, and even psychological territory for society, with skepticism and often overlapping speculation about how Musk will carry out his ambitious takeover of Twitter.
Obviously, Musk is the richest person on Earth. So that’s how it happened to him, with an estimated $249 billion to his name according to Bloomberg’s Billionaire Index. But Musk can’t use all of his net worth, as it is mostly tied to Tesla stock.
Of course, there’s nothing stopping him from borrowing money with the shares, but he can only use so many shares as collateral, according to a New York Time report. It’s also a problem that Tesla stock isn’t really famous for maintaining a stable stock price.
But despite that, Musk is steadfast in his ambition to take over Twitter and change the fabric of social reality — for he wasn’t entirely wrong to call the website the “de-facto town square.” Musk has dubbed himself “absolute free speech,” but demonstrates no understanding of the internet’s evolution from dial-up-day Web 1.0 to the enormous assurances brought about by the premature disclosure of information in Web 2.0 — let alone the nature of the coming era of Web 3.0.
This is news that develops and is updated regularly as new information becomes available.