The Indian Wire » Business » Regulatory Filing Shows Elon Musk Commited Extra $6.25 Billion In Twitter Deal 

Regulatory Filing Shows Elon Musk Commited Extra $6.25 Billion In Twitter Deal 

Regulatory Filing Shows Elon Musk Commited Extra $6.25 Billion In Twitter Deal

Elon Musk has committed an extra $6.25 billion in equity financing to finance the $44-billion offer for Twitter Inc, bringing down the business magnate’s Tesla Inc’s margin loan to nil.

Even though Musk had last week linked the purchase’s progress to Twitter delivering proof that spam bots accounted for less than 5% of total users, the revelation made in a regulatory filing on Wednesday indicated Musk is working on giving the closure to the deal.

While he was skeptical that spam bots counted at least 20% of the total users, the richest man on Earth and Tesla’s CEO suggested that he may look for a lower price valuation for the social media company.

Musk said on Wednesday that he was in touch with Twitter’s shareholders, including former Twitter CEO Jack Dorsey, for commiting extra financing commitments to fund the deal.

The revelation of the details of Musk’s financing plans came on the day when Twitter shareholders convened for their regularly scheduled meeting.

Musk, in the beginning had a $12.5-billion margin loan, but earlier this month, it lowered down to $6.25 billion after bringing in co-investors.

Musk in April announced that he had procured $46.5 billion in debt and equity finance to acquire Twitter, with Musk contributing $33.5 billion.

Following Musk’s offer, the board of directors of Twitter first thought of adopting a poison pill that restricted his ability to increase his stake in the company but later unanimously voted to go ahead with his buyout offer.

Twitter last week said it would stick to the deal at the agreed price of $54.20. Separately, Twitter shareholders, on Wednesday meeting, voted down the re-election of a Musk supporter– Egon Durban– the co-head of private equity firm Silver Lake, to the company’s board of directors at its annual shareholder meeting on Wednesday.

Jack Dorsey’s term as a board member ended on Wednesday. Patrick Pichette, a general partner at Inovia Capital, got re-elected as the board member. 

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Harshita Sharma

I bring to you startup, stock market, economy, business news. So, stay tuned!

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