If you haven’t spent the last two weeks at Elden Ring (understandably), you know that Elon Musk made a big splash in Twitter’s capital in early April. $2.7 billion investment. The CEO of Tesla, now part of the main shareholders of the social network, even negotiated his place on the board, provided his turnout did not exceed 15%.
But ten days later, the billionaire changes his way. He explains that he wants to put $43 billion on the table to take over Twitter. With this offer, it can become the majority shareholder of Mavi Kuş by purchasing 54% of the capital. However, Elon Musk said on Thursday, April 21, 2022, He had the funds to initiate the hostile takeover on Twitter.
Also read: Elon Musk explains why he definitely wants to buy Twitter
Elon Musk raises funds to buy Twitter
In a document submitted to the US Financial Markets Regulatory Authority today, we learn that financing was provided by two letters of commitment from Morgan Stanley Senior Funding bank. The organization will give a loan of 25.5 billion dollars,Elon Musk will take $21 billion out of his pocket. This is a total of 46.5 billion dollars. The document clearly states that Twitter has yet to officially respond to the SpaceX boss’s offer.
Confirmed by a spokesperson for the social network and currently a “comprehensive and comprehensive review”: “We have received Elon Musk’s updated, non-binding offer that provides additional information on the original offer and new information on potential funding. As previously disclosed and communicated directly to Mr. Musk, the Board of Directors is committed to conducting a careful, thorough and deliberate review to determine the course of action it believes is in the best interest of the Company and all Twitter shareholders.”
Keep in mind that if the funding seems secure, it won’t be that easy to take over Twitter. The social network recently took measures against Elon Musk’s hostile takeover bid, including “Poison Pills” or poison pills. The principle is simple but effective: if a business exceeds 15% of the capital without the approval of the board of directors, other shareholders will be able to buy new shares at a discounted price. The aim is to mechanically dilute the share of the investor who is considered the enemy.
Source : Anger
