Elon Musk Has Secured $46.5 Billion to Acquire Twitter

Elon Musk Has Secured $46.5 Billion to Acquire Twitter

Elon Musk claims to have secured $46.5 billion in finance to purchase Twitter and is in the process of negotiating a deal with the firm. Musk made a bid to purchase the social networking business for $54.20 per share, or $43 billion, last week.

Elon Musk, who owns roughly 9% of Twitter stock, would make a tender offer to other shareholders instead of going via the board. Musk, on the other hand, has yet to determine whether or not to do so. According to documents filed with the Securities and Exchange Commission, Twitter Inc., located in San Francisco, has yet to reply to Musk’s proposal.

Elon Musk’s latest proposal and “new information on potential financing” were received by Twitter on Thursday, according to a statement released by the company.

The company said its 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”.

Morgan Stanley and other financial firms would provide the funding. Barclays, Bank of America, Societie Generale, Mizuho Bank, BNP Paribas, and MUFG are among the other banks participating. Morgan Stanley is the third-largest stakeholder in Twitter, behind Vanguard Group and Musk.

In response to the unwanted offer, Twitter’s board of directors took a “poison pill” aimed to prevent Elon Musk from completing his purchase. If Musk’s bid is accepted, the pill, technically known as a limited duration shareholder rights plan, will allow current Twitter shareholders to acquire the shares at a reduced rate. And it’s not beneficial for Musk’s side.

In response to the “poison pill,” Musk announced that if he is successful in acquiring the firm, he will pay board members $0 to save $3M.

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