Musk secures $7.1bn to finance Twitter deal

Published May 6, 2022
Elon Musk has sold $8.5 billion worth of Tesla shares to finance his deal for Twitter.—Reuters
Elon Musk has sold $8.5 billion worth of Tesla shares to finance his deal for Twitter.—Reuters

NEW YORK: Elon Musk has raised $7.1 billion for his Twitter acquisition from investors that include Oracle founder Larry Ellison and Saudi Prince Alwaleed bin Talal, according to a securities filing on Thursday.

Musk, chief executive of Tesla and SpaceX, listed 18 investors who agreed to cash investments including Ellison ($1bn), Sequoia Capital ($800m) and Vy Capital ($700m).

The Saudi prince, the head of the Kingdom Holding Company conglomerate, agreed to contribute about 35 million Twitter shares worth $1.9bn so as to retain a stake in the company post-acquisition, the filing said.

Alwaleed had previously balked at Musk’s $54.20 per share offer as too low, but praised Musk on Twitter on Thursday, saying “I look forward to roll our $1.9bn in the ‘new’ @Twitter and join you on this exciting journey.”

The investments will reduce a $12.5bn margin loan organised through Morgan Stanley and other banks to $6.25bn, the filing said.

The new financing means less of Musk’s Tesla shares will be used as collateral under the margin loan.

Musk “may receive additional financing commitments to fund additional portions of the total Merger Consideration,” the filing said, adding that the Tesla chief is in talks with former Twitter Chief Executive Jack Dorsey and others who may contribute shares to maintain an equity stake.

The Twitter takeover is expected to close later in 2022.

CNBC reported that upon completion of the deal, Musk is expected to serve as temporary CEO of Twitter for a few months, the network said, citing unnamed sources.

Published in Dawn, May 6th, 2022

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Counterterrorism plan
23 Nov, 2024

Counterterrorism plan

WITH terrorist attacks surging, resulting in high casualties amongst both civilians and security personnel, it is...
Bullish stock market
23 Nov, 2024

Bullish stock market

NORMALLY, stock markets rise gradually. In recent months, however, Pakistan’s stock market has soared to one ...
Political misstep
23 Nov, 2024

Political misstep

FORMER first lady Bushra Bibi’s video address to PTI followers has triggered a firestorm. Her assertion implying...
Kurram atrocity
Updated 22 Nov, 2024

Kurram atrocity

It would be a monumental mistake for the state to continue ignoring the violence in Kurram.
Persistent grip
22 Nov, 2024

Persistent grip

An audit of polio funds at federal and provincial levels is sorely needed, with obstacles hindering eradication efforts targeted.
Green transport
22 Nov, 2024

Green transport

THE government has taken a commendable step by announcing a New Energy Vehicle policy aiming to ensure that by 2030,...