Please ensure Javascript is enabled for purposes of website accessibility

West Bank Town Becomes ‘Big Prison’ as Israel Fences It In

3 days ago

Trump Says He’s Willing to Let Migrant Farm Laborers Stay in US

3 days ago

US Electric Vehicle Tax Breaks Will Expire on Sept. 30

3 days ago

Eyeing Arctic Dominance, Trump Bill Earmarks $8.6 Billion for US Coast Guard Icebreakers

4 days ago

Trump’s Sweeping Tax-Cut and Spending Bill Wins Congressional Approval

4 days ago

Americans Celebrate Their Independence With Record-Breaking Travel Numbers

4 days ago

US Supreme Court to Decide Legality of Transgender School Sports Bans

4 days ago

Nvidia Set to Become the World’s Most Valuable Company in History

4 days ago

Poll: 41% in US ‘Extremely Proud’ to Be American, Near Historic Low

4 days ago
Musk Says He Has $46.5B in Financing Ready to Buy Twitter
gvw_ap_news
By Associated Press
Published 3 years ago on
April 21, 2022

Share

Elon Musk says he has lined up $46.5 billion in financing to buy Twitter, and he’s trying to negotiate an agreement with the company.

Last week, Musk announced an offer to buy the social media company for $54.20 per share, or about $43 billion. At the time, he did not say how he would finance the acquisition.

The Tesla CEO said Thursday in documents filed with U.S. securities regulators that he’s exploring what’s known as a tender offer to buy all of the social media platform’s common stock for $54.20 per share in cash. Under a tender offer, Musk, who owns about 9% of Twitter shares, would take his offer directly to other shareholders, bypassing the board.

But Musk hasn’t decided yet whether to do that.

The documents filed with the Securities and Exchange Commission say San Francisco-based Twitter Inc. has not responded to Musk’s proposal.

Twitter said in a statement Thursday that it has received Musk’s updated proposal and its “new information on potential financing.”

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.”

Last week Twitter’s board adopted a “poison pill” defense that could make a takeover attempt prohibitively expensive.

The financing would come from Morgan Stanley and other financial institutions. Other banks involved include Barclays, Bank of America, Societie Generale, Mizuho Bank, BNP Paribas and MUFG. Morgan Stanley is one of Twitter’s biggest shareholders, behind Vanguard Group and Musk.

Musk said that $13 billion in financing came from Morgan Stanley and the other banks, as much as $12.5 billion would be loans secured by his Tesla stock, and committed $21 billion in equity, “directly or indirectly” from him, although he didn’t say what the source of those funds would be. The filing says that the equity commitment could be reduced by contributions from others or additional debt taken on.

Musk is the world’s wealthiest man, according to Forbes, with a nearly $279 billion fortune. But much of his money is tied up in Tesla stock — he owns about 17% of the company, according to FactSet, which is valued at more than $1 trillion — and SpaceX, his privately held space company. It’s unclear how much cash Musk has.

Electric car and solar panel maker Tesla allows executive officers to use shares as collateral for loans, but limits the borrowing to 25% of the value of the pledged shares. Musk owns 172.6 million shares worth $176.47 billion. Just over 51% of his stake already is pledged as collateral, according to a Tesla proxy statement. That means Musk could use the remaining stake to borrow about $21.5 billion.

Getting financing from big banks brings a lot of credibility to Musk’s bid, said Wedbush Securities analyst Daniel Ives.

“This isn’t just Musk antics,” Ives said. “Banks were going to line up for this deal from the richest person in the world. The fact they they pulled it together this quick shows that Musk isn’t joking around. This is a real bid.”

Ives said the tender offer puts more pressure on Twitter’s board to find a second bidder or go to the negotiating table with Musk. “It’s a way to get around the poison pill and let shareholders speak,” he said.

A Delaware corporation named X Holdings 1 was formed at the direction of Musk and some affiliates who intend to “acquire, directly or indirectly, all of the outstanding equity interests of, or directly or indirectly merge with Twitter Inc.,” according to a financing commitment letter the company submitted.

Shares of Twitter fell slightly to $46.57 in Thursday midday trading after the financing became public. The share price is $7.63 below Musk’s offer.

Musk “is seeking to negotiate a definitive agreement for the acquisition of Twitter … and is prepared to begin such negotiations immediately,” the documents say.

With a tender offer, Musk would try to get other shareholders to pledge their stock to him at a certain price on a certain date. If enough shareholders agree, Musk could use that as leverage to get the board to drop the poison pill defense.

Experts say the poison pill essentially would spell the end of Twitter if Musk or another investor acquires 15% or more of the company. Under the poison pill, stockholders would get rights to buy preferred stock at $210. If someone acquires a 15% stake, the stockholders would get $420 in Twitter stock or assets, more than Twitter could afford to pay.

Musk signaled the possibility of a tender offer several times this week in tweets using the word “tender.”

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

How Trump’s ‘Big, Beautiful Bill’ Will Make China Great Again

DON'T MISS

What’s Caitlin Clark Worth to the WNBA? A Lot More Than Her $78,066 Salary.

DON'T MISS

Trump to Sign Tax-Cut and Spending Bill in July 4 Ceremony

DON'T MISS

Madre Fire Spurs Evacuations Across 3 Counties, Grows to More Than 70,000 Acres

DON'T MISS

Clovis, Sanger, Madera, and Bass Lake Will Light the Sky With Fireworks Shows Tonight

DON'T MISS

Oil Dips Ahead of Expected OPEC+ Output Increase

DON'T MISS

613 Killed at Gaza Aid Distribution Sites, Near Humanitarian Covoys, Says UN

DON'T MISS

Fresno County Authorities Investigating Suspicious Death of Transient Man

DON'T MISS

West Bank Town Becomes ‘Big Prison’ as Israel Fences It In

DON'T MISS

Israeli Military Kills 20 in Gaza as Trump Awaits Hamas Reply to Truce Proposal

UP NEXT

Americans Celebrate Their Independence With Record-Breaking Travel Numbers

UP NEXT

Nvidia Set to Become the World’s Most Valuable Company in History

UP NEXT

Poll: 41% in US ‘Extremely Proud’ to Be American, Near Historic Low

UP NEXT

Del Monte Files for Bankruptcy. Gets Nearly $1B to Keep Producing Through Process

UP NEXT

Dollar Gains Ground Against Major Peers After Better-Than-Expected US Jobs Data

UP NEXT

Newsom and Legislature Tangle With Construction Unions Over Minimum Wage

UP NEXT

US Investor Strikes $1 Billion Merger to Create Bitcoin Treasury Company

UP NEXT

Wall Street Indexes Climb After Israel-Iran Ceasefire

UP NEXT

Investors React to US Attack on Iran Nuclear Sites

UP NEXT

The Secret to Finding the Best Travel Bargains

Trump Calls Musk’s Formation of New Party “Ridiculous” and Confusing

10 hours ago

Fresno DUI Driver Slams Into CHP Motorcycle, Tow Truck on Highway 99

16 hours ago

Russia Downs 120 Ukrainian Drones Overnight, Defense Ministry Says

16 hours ago

Israel Sends Delegation to Qatar for Gaza Talks Ahead of Netanyahu Trip to US

16 hours ago

San Luis Obispo’s Madre Fire Grows to Nearly 80,000 Acres, 30% Contained

16 hours ago

Musk Announces Forming of ‘America Party’ in Further Break From Trump

16 hours ago

Death Toll From Texas Floods Reaches 59, Including 21 Children

16 hours ago

California’s Politics Drifts Right While New York’s Leans Left

17 hours ago

How Trump’s ‘Big, Beautiful Bill’ Will Make China Great Again

2 days ago

What’s Caitlin Clark Worth to the WNBA? A Lot More Than Her $78,066 Salary.

2 days ago

TikTok Building New Version of App Ahead of Expected US Sale, the Information Reports

TikTok is building a new version of its app for users in the United States ahead of a planned sale of the app to a group of investors, The I...

9 hours ago

A logo is displayed over a door at the U.S. headquarters of the social media company TikTok in Culver City, California, U.S. January 17, 2025. (Reuters File)
9 hours ago

TikTok Building New Version of App Ahead of Expected US Sale, the Information Reports

Boxes of aid are stacked as Gaza Humanitarian Foundation said it has commenced operations to begin distribution of aid, in Rafah, in the southern Gaza Strip, May 26, 2025. (Reuters File)
9 hours ago

Hamas Government Office Rejects US Accusation of Involvement in Gaza Aid Site Attack

A volunteer searches for flood victims after deadly flooding in Kerr County, Texas, U.S., July 6, 2025. REUTERS/Sergio Flores
9 hours ago

Death Toll From Texas Floods Reaches 78, Trump Plans Visit

Tesla CEO and X owner Elon Musk listens as US President-elect Donald Trump speaks during a meeting with House Republicans at the Hyatt Regency hotel in Washington, DC, U.S. on November 13, 2024. (Reuters File)
10 hours ago

Trump Calls Musk’s Formation of New Party “Ridiculous” and Confusing

A 22-year-old suspected DUI driver crashed into a parked CHP motorcycle and tow truck on Highway 99 near Fresno, narrowly missing an officer and bystanders, CHP said Saturday, July 5, 2025. (CHP)
16 hours ago

Fresno DUI Driver Slams Into CHP Motorcycle, Tow Truck on Highway 99

A service member of a drone unit of the 24th Separate Mechanized Brigade named after King Danylo of the Ukrainian Armed Forces controls a heavy combat drone while it flies over positions of Russian troops, amid Russia's attack on Ukraine, in Donetsk Region, Ukraine June 12, 2025. (Reuters File)
16 hours ago

Russia Downs 120 Ukrainian Drones Overnight, Defense Ministry Says

An Israeli tank maneuvers in Gaza, as seen from the Israeli side of the border, July 6, 2025. (Reuters/Amir Cohen)
16 hours ago

Israel Sends Delegation to Qatar for Gaza Talks Ahead of Netanyahu Trip to US

The Madre Fire near New Cuyama has burned nearly 80,000 acres as of Sunday, July 6, 2025, morning, prompting widespread evacuation orders and warnings across three counties. (CalFire)
16 hours ago

San Luis Obispo’s Madre Fire Grows to Nearly 80,000 Acres, 30% Contained

Help continue the work that gets you the news that matters most.

Search

Send this to a friend