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HomeOther'sBusinessMusk drops Tesla loans from $44 bn Twitter takeover

Musk drops Tesla loans from $44 bn Twitter takeover

In relief for Tesla shareholders, Elon Musk has committed to providing an additional $6.25 billion in equity financing for his $44 billion Twitter takeover, bringing his total equity commitment to $33.5 billion.

Tesla stock had nosedived more than 30 percent after Musk announced to fund his Twitter buyout by borrowing against his Tesla ownership stake.

In a fresh filing with the US Securities and Exchange Commission (SEC), Musk announced the expiration of a series of margin loans against Tesla stock.

Twitter stock went up in after-hours trading after the news broke late on Wednesday, reports TechCrunch.

Musk’s original plan was to acquire Twitter with a combination of $21 billion in personal equity and $25.5 billion in loans and $12.5 billion of those loans were secured against Tesla shares owned by Musk.

According to the new SEC filing, “(Elon Musk has) committed to an increase the aggregate principal amount of the equity commitment thereunder to $33.5 billion.”

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However, it is not clear where the additional $6.25 billion will come from.

Musk has put the Twitter deal on hold, complaining about the number of fake and spam accounts on the platform.

The Tesla CEO has secured nearly $7.14 billion in equity commitments from friends and other investors to acquire Twitter.

Musk received $1 billion from Oracle co-founder Larry Ellison and $5 million from Honeycomb Asset Management, which invested in his SpaceX company.

 

 

 

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