Elon Musk Says He Has Lined Up $46.5 Billion to Buy Out Twitter in New Filing

Elon Musk said in a filing on Thursday that he has enough $46.5 billion in commitments to finance a potential buyout of Twitter, CNN reports.

Musk in a filing to the Securities and Exchange Commission on Thursday said that he has two debt commitment letters from Morgan Stanley and other unnamed financial institutions and one equity commitment letter from himself.

Musk said in the filing that he has yet to receive a response from Twitter to his offer to buy out every share of the company for $54.20 each, or about $41 billion, to take the company private.

Musk said he is “seeking to negotiate” an agreement and “is prepared to begin such negotiations immediately.”

Musk previously told the SEC his $41 billion proposal was his “best and final” offer.

Twitter pushes poison pill:

Though Twitter has not formally responded to the offer, the company implemented a so-called poison pill on Friday to make it harder for any investor to buy a controlling stake in the company without the board’s approval.

Musk said he is “exploring” whether to offer to buy Twitter stock en masse directly from shareholders but "has not determined whether to do so at this time."

Twitter responds:

Brenden Lee, a spokesperson for Twitter, said the company had received the "updated, non-binding proposal" from Musk and the "new information on potential financing."

"As previously announced and communicated to Mr. Musk directly, the 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," Lee said.

Twitter stock rose about 1% on Thursday to just over $47 a share.

 

Related News
Comments