Facing questions as to whether or not he can pony up the dough to buy social platform Twitter, Elon Musk filed an papers with the U.S. Securities Exchange Commission on Thursday, saying he’s put together a $46.5 billion financing package to swing the deal, CNN Business reports.
The package, which comes a week after the SpaceX-Tesla honcho first made his hostile takeover play for the social media monster, includes $21 billion in equity financing and a combined $25.5 billion in debt commitments from from Morgan Stanley and other financial institutions, according to the Wall Street Journal.
More controversially, Musk also put Tesla up as collateral. That’s about 64 million shares—roughly one-third—of his Tesla stake, Matt Levine writes in his Money Stuff newsletter.
The financing commitment shows that Musk is serious. “These are real commitment letters from real banks,” Levine writes.
Also in the filing, Musk raised the idea of offering a tender offer—another type of hostile bid that would include buying shares en masse directly from the shareholders, per CNN Business. In that case, he would circumvent the board and take his offer of $54.20 a share directly to the shareholders. Musk concluded in the filing that he “has not determined whether to do so at this time.”
But Musk seems to be toying with the idea, as he cheekily tweeted the title of an Elvis Presley classic:
On Monday, Twitter filed a “poison pill” defense against Musk gaining further control of the company and to block the takeover. The strategy would activate a dilution of Twitter’s shares in the event that any shareholder amasses a 15 per cent stake without board approval. Twitter’s largest shareholder is Vanguard Group with a 10.3% stake.
When Musk made his takeover bid on April 13 after acquiring 9.1% of Twitter’s stock, he offered $43 billion at $54.20 a share. 420, get it? Hard to miss, since he has made the same joke in the past when tweeting about stock prices.
Musk has said he wants to buy the platform to improve it and to use it as a tool to promote freedom of speech around the world.
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