This is the “funding provided” for Elon Musk’s bid to take over Twitter.
The billionaire said in a new securities filing on Thursday that he had secured $43 billion or more, would need to buy Twitter at $54.20 a share and was considering an offer to buy the company at that price.
If Musk honors the offer, he will make a public offer to buy any share of Twitter for $54.20 (or a higher price to be determined later). Shareholders may choose to offer or hold their shares. If a majority of shareholders accept the deal (including Musk’s stake), he can effectively take control of the company… However, the latest Twitter-founded Poison Abbot could thwart that plan.
In fact, Musk’s statement indicates that he is ready to negotiate directly with the Twitter Board: “The person in question is trying to negotiate a final agreement with the Rapporteur to buy Twitter and is ready to start these negotiations immediately,” it says. he. to notice. . With funding underway, Twitter’s board will likely take the offer seriously.
Musk’s attempt (apparently dubbed “Project X,” according to the document) is funded by a two-debt commitment letter led by Morgan Stanley and backed by other institutions, as well as a capital commitment letter, raising a total of about US$ 46.5 billion. .
In 2018, Musk wrote on Twitter: “Thinking about buying Tesla privately for $420. Financing is provided.” That tweet would have caused a stir in the lawsuits because, in fact, it did not provide funding. However, this time he has the money to offer his 4/20 theme.
The latest move follows the unexpected efforts of Musk, CEO of Tesla and SpaceX, and the richest man in the world.
Musk told a TED conference on April 14 that he wanted to buy Twitter because “it has become a de facto plaza in the city, so it’s really important that people have a reality and a perception that they can speak freely within themselves.” The limits of the law”.
“This is not a way to make money, my strong intuition is that having as credible and inclusive a public platform as possible is extremely important for the future of civilization. I don’t care one bit about the economy.”
Musk began buying Twitter shares in late January, but on April 4 he publicly announced more than 9% of his shares (about $2.9 billion), raising the shares (Musk would later face an investor suit for its late release). The company reportedly offered Musk a board seat, but he declined a few days later when CEO Parag Agrawal warned staff that “there will be distractions ahead.”
Before Musk regularly asked Twitter for ideas to “fix” his account, he went from passive to active shareholder the following week and offered to buy Twitter for $54.20 a share, valuing the company a little more. US$43 billion.
“After making my investment, I now realize that the company does not thrive or serve this public empire in its current form. “Twitter must become a private company,” Musk wrote in a text message to Twitter President Brett Taylor. “Twitter has extraordinary potential. I open”
The company will continue to pursue a “Poison Pill” plan aimed at thwarting hostile takeover attempts and forcing Musk and any other potential buyers to negotiate with the board if they are seriously considering the offer.
Musk told TED he had a “Plan B” if he couldn’t buy a social media company.
Source: Hollywood Reporter
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
