Thing promised, thing done. Elon Musk has just announced that he has succeeded in raising the necessary funds to proceed with the takeover of Twitter. In a document filed on Thursday with the American Financial Markets Supervisory Authority, the CEO of Tesla indicated that he had 46.5 billion dollars to finance the operation.
Unless you’ve spent the last two weeks on the Elden Ring (understandably), you know that Elon Musk made a big splash in the capital of Twitter in early April, via a $2.7 billion investment. Now part of the main shareholders of the social network, the CEO of Tesla had even negotiated his seat on the board of directors, provided that his participation does not exceed 15%.
But ten days later, the billionaire changes tack. He announces that he wants to put 43 billion dollars on the table to take possession of Twitter. With this offer, he is able to acquire 54% of the capital and become the majority shareholder of the blue bird. However, Elon Musk has just confirmed this Thursday, April 21, 2022 that he was in possession of the necessary funds to launch its hostile takeover on Twitter.
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Elon Musk has raised the funds to buy Twitter
In a document filed today with the US Financial Markets Supervisory Authority, we learn that the financing is provided by two letters of commitment from the bank Morgan Stanley Senior Funding. The establishment will credit 25.5 billion dollars, whileElon Musk will put $21 billion out of his pocket. That’s a total of $46.5 billion. The document clearly states that Twitter has not yet officially responded to the SpaceX boss’s offer.
Information endorsed by a spokesperson for the social network, which ensures that it is currently carrying out a “thorough and comprehensive review”: “We have received Elon Musk’s updated, non-binding proposal, which provides additional information regarding the original proposal and new information on potential funding. As previously announced and communicated directly to Mr. Musk, the Board of Directors is committed to conducting a careful, complete and deliberate review to determine the course of action that it believes is in the best interest of the Company and all Twitter shareholders”.
Note that if funding seems assured, seizing Twitter will not be so easy. The social network recently adopted measures to counter Elon Musk’s hostile takeover bid, including “Poison Pills” or poison pills. The principle is simple, but effective: if an entity exceeds 15% of the capital without the agreement of the board of directors, other shareholders will be able to buy new shares at a reduced price. The goal is to mechanically dilute the share of the investor considered hostile.
Source : The Verge
