Elon Musk Twitter Deal Almost Finalized Following Visit to Company’s HQ
Before a deadline set by a court to complete his $44 billion acquisition of the social media platform, businessman Elon Musk claimed to have visited Twitter Inc.’s headquarters in San Francisco on Wednesday.
Entering Twitter HQ – let that sink in! pic.twitter.com/D68z4K2wq7
— Elon Musk (@elonmusk) October 26, 2022
Elon Musk has notified the banks that will be providing the $13 billion loan financing and the other equity investors in the Twitter takeover transaction that he hopes to conclude the acquisition agreement with Twitter by this Friday. The banks, on the other hand, have already begun to distribute $13 billion in cash.
BREAKING: Banks have started to send $13 billion in cash backing Elon Musk's takeover of Twitter. https://t.co/isCqSUxxei
— Sawyer Merritt (@SawyerMerritt) October 26, 2022
In case you forgot, Twitter has 765.246 million shares outstanding (excluding 63 million in RSUs). Elon Musk already owns 73.115 million shares of these, valued at $3.963 billion at the $54.20 per share recommended offer price. Accordingly, the Tesla CEO will require $37.5 billion in the remaining outstanding Twitter shares. The debt component of the suggested financing arrangement now works out to be roughly $13 billion. The part for equity financing is now $24.51 billion.
Elon Musk sold around $8.5 billion of Tesla shares in April and May to pay for his stock obligations under the first Twitter takeover agreement. The Tesla CEO then sold shares for $6.9 billion back in August. This means that before October, Tesla’s CEO had already saved up $15.4 billion of his own money for the Twitter transaction. Larry Ellison, Binance, Sequoia, the Saudi Prince Al Waleed, and others have committed $7.1 billion in stock to Elon Musk.
Elon Musk currently has $22.5 billion in equity finance, including $15.4 billion in cash and $7.1 billion in stock obligations. The CEO of Tesla, however, required $24.51 billion in equity financing, as previously mentioned, to complete the Twitter takeover agreement, leaving a $2 billion cash gap. The actual funding gap climbed to $5.4 billion when we considered Twitter’s 63 million RSUs.
Since its inception, the Twitter contract has been central to numerous disputes. However, if the purchase may go through, Elon Musk may soon be in charge of Twitter.