Elon Musk likely to invest $15 billion from his pocket to buy Twitter
India Today
Report suggests that Elon Musk will invest between $10 billion and $15 billion from his own pocket to buy Twitter. Last week, Musk proposed an offer to buy 100 per cent stake in Twitter for $54.20 per share in cash.
Last week, Elon Musk proposed an offer to buy 100 per cent stake in Twitter for $54.20 per share in cash. The billionaire is now said to invest between $10 billion and $15 billion, roughly between Rs 76,435 crore and Rs. 1,14,664 crore, from his own pocket to buy the popular microblogging site, the New York Post reported.
The report also suggests that Musk will launch a tender offer in the next few days and has also tapped Morgan Stanley to raise another $10 billion in debt. The NYP report also suggests that the billionaire may be willing to borrow against his current stake if necessary. Musk currently holds 9.2 per cent stake in Twitter, which makes him one of the biggest shareholders in the company.
Last week, the Twitter board "adopted the Rights Plan following an unsolicited, non-binding proposal to acquire Twitter". In the finance world, the move is known as a poison pill. This is basically blocking hostile takeovers by giving certain shareholders the right to purchase more stock if someone attempts to seize control. Speaking at the TED 2022 conference in Vancouver, Musk recently said that he has plan B if Twitter doesn't accept his offer. The billionaire hasn't revealed anything about his next move yet.
Elon Musk made an offer to buy 100 per cent stake in Twitter for 43 billion last week. He believes that the company has "extraordinary potential" and he wants to unlock it.
A lot has happened between Musk and Twitter in the last few days. It all started with Musk wanting to launch a new social media app and later purchasing a 9.2 per cent stake in Twitter. A few days later, CEO Parag Agrawal welcomed Musk to the board and the billionaire said he plans to bring “significant improvements to Twitter in coming months”.
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