Elon Musk says he has $ 46.5 billion for Twitter

Tesla’s CEO has a bundle of funding for the cinguetii social network in his pocket. Now the board has to evaluate the offer. A hostile takeover is not excluded

April 21, 2022 – 9:26 pm

– Milan

A $ 46.5 billion funding package. This is how Elon Musk answers the main question that has weighed heavily on his offer for Twitter for days. In a communication to the SEC, the American Consob reveals that it has secured over 25 billion in commitments from various banks to finance the operation. Tesla’s patron will put 21 billion out of his pocket, although it is not excluded that he may open the stake to some private equity. He then confirmed to the SEC that one of the hypotheses being studied is that of a hostile takeover bid, addressing the shareholders directly to increase the pressure on the board of directors, which has not yet responded to its 43 billion offer. The chirping board of the company confirms that it has received Musk’s updated proposal with funding details and reiterates its commitment to a “careful and broad” review.

what the twitter board will do

Musk’s greater clarity about the resources available to him to proceed probably won’t convince the Twitter board to accept his offer. According to rumors, the board is in fact oriented to reject it, as indicated by the defensive move of the approval of a poison pill anti-climb. Funding security, however, could make the board more open to negotiate, even though Musk has made it clear from the start that the offer is final and definitive.

tesla actions at stake

Since the presentation of the offer for Twitter, doubts about the possibility that Musk was not able to finance the transaction have multiplied, also fueled by the lack of clarity about the Tesla owner. Despite being the richest man in the world, Musk’s wealth is linked to Tesla securities which, according to the rules established by the board of the electric car giant, can be used in a limited way as collateral to obtain financing.

electric cars fly

Tesla stocks fly to Wall Street, where they earn over 10% driven by record accounts. The first quarter in fact closed with a net profit of 3.3 billion, a marked increase compared to the 438 million of the same period last year while revenues rose by 81% to 18.8 billion. Results above expectations obtained despite the lockdown in China which forced the Shanghai plant to close for three weeks. Now, however, it has returned to its operation with “more energy,” Musk said, setting another ambitious target, that of 1.5 million vehicles produced in 2022, 60% more than last year.



ttn-14