Elon Musk says he has $46.5 billion ready to buy Twitter

Elon Musk says he has $46.5 billion ready to buy Twitter
Elon Musk says he has $46.5 billion ready to buy Twitter

First modification: 04/22/2022 – 17:11

After tycoon Elon Musk made public his intention to launch a hostile offer to acquire 100% of Twitter, the question of how he will finance the multi-million dollar operation has arisen. The tycoon claims to have the money insured.

If Elon Musk got the resources and struck a deal to buy all of Twitter’s outstanding shares, it would be set up. the largest individual financing operation in history.

Last week, the owner of luxury carmaker Tesla announced an offer to buy the social media platform for $54.20 per share, or about $43 billion. Since then, he has revealed the plans that he already plans to execute. For example, the elimination of so-called “bots” or spam robots.

But the business is still covered by a blanket of uncertainty. When he made the announcement, Musk did not say how he would finance the acquisition. And it is that, despite being considered by the magazine ‘Forbes’ as the richest man in the world, his fortune is largely calculated based on his participation in Tesla.

The billionaire wanted to take fuel away from the market’s growing doubts that he did indeed have enough resources, and he sent documents to US regulators in which he offers details in this regard.

According to Musk, more than two-thirds of the funding package would come from his assets, with the rest from bank loans secured on the social media platform with institutions like Morgan Stanley and other banks.

One of the main concerns of the market has to do with the true ability to pay that Elon Musk would have if he eventually managed to get part of the borrowed money, even more so when he himself has hinted that he could separate himself from advertising, Twitter’s main Source of income. .

The Tesla CEO and founder of other companies including SpaceX and Boring Co said last week that he did not care “at all” about the money involved in the deal and that he was pursuing the acquisition because it was “extremely important to the future of civilization.”

Musk has a net worth estimated by Forbes at $270 billion. However, since much of his wealth is tied precisely to Tesla stock, the structure of the proposed deal would deplete much of his liquidity.

The company said in a statement on Thursday, April 21, that it had received the updated proposal, as well as “new information about possible financing” and said its board of directors is “committed to conducting a careful, comprehensive and deliberate review” of it.

With Reuters and AP

The article is in Spanish

Tags: Elon Musk billion ready buy Twitter


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