Twitter: Elon Musk will close the deal on Friday

    After the CEO of Tesla expressed willingness to abide by the original terms of the deal, eschewing objections over the quantity of bots that proliferate the social media platform or the security concerns raised by a prominent whistleblower, the Delaware Court of Chancery had stayed the trial between Elon Musk and Twitter until 5:00 p.m. on the 28th of October in order to allow both parties to close the takeover agreement.

    Elon Musk has informed the banks that will be providing the $13 billion in loan financing as well as the other equity investors in the Twitter takeover deal that he hopes to conclude the takeover agreement with Twitter by this Friday. The banks, on the other hand, have already begun to distribute $13 billion in cash.

    Twitter has 765.246 million shares outstanding (excluding 63 million in RSUs). Elon Musk already owns 73.115 million shares of these, which are valued at $3.963 billion at the $54.20 per share recommended offer price.

    Accordingly, the Tesla CEO will require $37.5 billion in total to buy the remaining outstanding Twitter shares. It goes without saying that the debt component of the suggested financing arrangement now works out to be roughly $13 billion. The portion for equity financing is now $24.51 billion.

    Elon Musk sold around $8.5 billion worth of Tesla shares in April and May to pay for his stock obligations under the initial 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.

    Additionally, Larry Ellison, Binance, Sequoia, the Saudi Prince Al Waleed, and others have committed $7.1 billion in equity 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 take Twitter’s 63 million RSUs into consideration.

    In the midst of Monday’s massacre in the EV giant’s stock, rumours that Musk was offloading shares were rampant. If that were the case, the CEO of Tesla was compelled to reveal his sales by Wednesday at 10:00 p.m. ET. The absence of the necessary papers, however, suggests that Musk did not sell any additional Tesla shares in October.

    The only other possibility is that Elon Musk managed to persuade some of the other partners to provide further stock commitments for the Twitter takeover bid. On Wednesday, Elon Musk arrived at Twitter’s headquarters holding a real sink. On Friday, he is expected to address the staff of the social networking site. Additionally, it has now been announced by the New York Stock Exchange that Twitter shares would be delisted on Friday after the formal completion of the takeover agreement.

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