Tesla CEO Elon Musk says he has funded $46.5 billion to buy Twitter Inc and plans to launch a tender offer for its shares, a filing with US regulators showed on Thursday.
last week, Tesla CEO Announced an offer to buy the social media company for $54.20 per share, or approximately $43 billion. At the time, he had said how he would finance the acquisition.
The Tesla CEO said in documents filed with US securities regulators on Thursday in what is known as a tender offer to buy all of the social media platform’s common stock for $54.20 per share in cash.
the document says Twitter Hasn’t responded to Musk’s offer.
Musk himself has committed $33.5 billion, which will include $21 billion in equity and $12.5 billion in margin loans, to finance the transaction. Banks, including Morgan Stanley, have agreed to provide another $13 billion in secured loans against Twitter, according to regulatory filings.
The filing said it “has received letters of commitment to provide entities related to (Musk) a total of approximately $46.5 billion.”
Under a tender offer Musk, who owns about 9% of Twitter shares, would bypass the board and take his offer directly to other shareholders.
Twitter’s board last week adopted a “poison pill” defense that could make the takeover effort prohibitively expensive.