Elon Musk Secures Financial Backing For Twitter Offer

Elon Musk Secures Financial Backing For Twitter Offer

The Tesla owner, Elon Musk, has found the US$46.5 billion he needs in order to move ahead with his offer to buy out the popular social media platform, Twitter.

According to a filing made to the US Securities and Exchange Commission, Musk has received two commitment letters from Morgan Stanley Senior, with the bank ensuring that they will provide loans worth about US$25.5 billion (about $34.6 billion) while the other US$21 billion (about $28 billion) will come out of his own pocket.

That way, the world’s richest man will be able to move forward with his Twitter takeover, buying out all the shares from Twitter stakeholders. A tender offer has already been made yet no official response has been given, with Musk now exploring his options. A spokesperson for the company pointed out that the offer had been received and is under a thorough screening process.

“We are in receipt of the updated, non-binding proposal from Elon Musk, which provides additional information regarding the original proposal and new information on potential financing,” the spokesperson said. “As previously announced and communicated to Mr. Musk directly, the Board is committed to conducting a careful, comprehensive and deliberate review to determine the course of action that it believes is in the best interest of the Company and all Twitter stockholders.”

Musk posted a number of tweets on his personal account, where he attempted to point out the benefits of his takeover for all other users.

The filing does not have any other names next to the trillionaire’s in regards to the offer, which means the financial burden will fall on him and him alone. It’s worth pointing out that Musk already owns a 9 percent share of Twitter, more than any other of its stakeholders.

Recently, the company opted to take a “poison pill” approach to Musk’s attempt to buy out the company, permitting some of its shareholders to purchase more of its stock if one of the board members were to buy out a percentage of over 15 per cent without the approval of the board itself.

Although the SpaceX owner claims his reasons for wanting to buy out the social media platform are to create a more open and free space, his intentions have been questioned by many. One thing that can’t be doubted however is how serious he is with moving forward with this acquisition.

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