All said and done: This is how Elon Musk will pay $44 billion for Twitter | World news
As a judge accepted Elon Musk’s request to stop a Twitter case against the purchase of $ 44 billion of the social media company by October 18 on Wednesday, the billionaire had a moment to breathe but not more than that as a big question The following after the agreement will be: How will Elon Musk pay for Twitter?
Earlier this week, Elon Musk said he would buy Twitter for $54.20 per share—the price it acquired in April.
What is Elon Musk’s financial plan?
Elon Musk has pledged to provide $46.5 billion in equity and debt financing for the Twitter acquisition. This will cover the $44 billion price tag and closing costs. Morgan Stanley and Bank of America Corp. will likely provide $13 billion of the debt financing.
Read more: Why Elon Musk changed his mind on the Twitter deal: Explained
The rest will come from Musk’s $33.5 billion equity commitment including his 9.6% Twitter stake and $7.1 billion from equity investors. That would leave it short of $22.4 billion.
How will Elon Musk fill the short?
Elon Musk may choose to sell more of his stock in Tesla, or in SpaceX. You can also get a loan from banks against stocks or get more investors.
Does Elon Musk have more equity investors?
The founder of Oracle Larry Ellison has said in April that he is interested in participating in the business as one of the investors in Twitter becoming part of the group of investors who have promised to give & 7.1 billion of the fund.
