If you didn’t think that Elon Musk was dead serious about buying Twitter, then think again.
The man is serious, and he’s making the moves to prove it.
Reports indicate that in addition to his massive personal wealth, Musk has secured financing for the deal by taking out $25.5 BILLION in loans from major banks.
You read that right, these banks have agreed to loan the man almost 26 BILLION dollars.
That’s such an extreme sum that it almost doesn’t seem real.
Musk has put forth a tender offer.
A tender offer is an open offer to the shareholders of a company to sell their personal shares to a bidder.
If enough shareholders sold to Musk, he could accumulate enough to have a controlling stake in the company.
To combat this, Twitter has adopted a “poison pill” defense.
This means that if Elon becomes the controlling owner, the poison pill would allow other shareholders to buy more shares at a discounted price which would dilute Musk’s stake.
BREAKING: Elon Musk has
1. $25.5B in financing for Twitter from a group of banks led by Morgan Stanley—includes $12.5B in margin loan against his Tesla shares.
2. The rest of the money ($21 B) is coming out of his own pocket. (SEC filing)
Translation: THIS GUY IS SERIOUS.
— Trish Regan (@trish_regan) April 21, 2022