Monday, Sep 26, 2022
×
Outlook.com
×

Elon Musk To Invest $15 Billion Of His Own Money To Acquire Twitter: Report

Musk is planning to offer a tender offer within 10 days and has roped in investment banking firm Morgan Stanley to raise as much as $10 billion in debt against Twitter, in the manner of a traditional leveraged buyout.

undefined
Tesla and SpaceX CEO Elon Musk.

Days after Twitter adopted the ‘poison pill’ defense to wield Elon Musk’s hostile takeover of the company, the SpaceX and Tesla CEO is planning to invest between $10 billion and $15 billion of his own money, to acquire Twitter, Newyork Post reported citing sources. 

The report said, Musk is planning to offer a tender offer within 10 days and has roped in investment banking firm Morgan Stanley to raise as much as $10 billion in debt against Twitter, in the manner of a traditional leveraged buyout. Notably, a major chunk of investment worth $20 billion will come from co-investors who will make a tender offer directly to Twitter shareholders, as per the report.

Last week, Musk proposed to buy Twitter worth $41.39 billion. He offered $54.20 per share, at a 38 per cent premium to the closing price of Twitter’s stock on April 1, the last trading day before Musk bought the majority stake in the company. In a letter to Twitter Chairman Bret Taylor, Musk said, “My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder.”

Following this, the shareholders of the company either rejected Musk’s proposal or said that the Twitter buyout price is very low. 

Musk is the second-largest shareholder of the microblogging site, acquiring a 9.2 per cent stake in the company. Musk made a passive investment of 73.5 million shares of common stock in his personal capacity.  

Musk who is the richest man in the world, according to Forbes, has a net worth of $270 billion. 

Advertisement
Advertisement
Advertisement