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$46.5 billion financing commitment letter arrived! Musk is considering making a takeover offer for Twitter

via:凤凰网     time:2022/4/22 8:03:22     readed:162

The "Musk Acquisition of Twitter Incident" that recently swept the financial technology page added new trends after Musk released two mysterious and obscure tweets this week, "Love Me Tender" and "is the Night".

On Thursday, April 21, EST, according to a new U.S. securities filing, Tesla CEO Musk is studying whether to start making a takeover offer for U.S. social platform Twitter to acquire Twitter stock at $54.20 per share (or about $43 billion), and the proposal will depend on completing financing and due diligence, rather than the original financing.

The document states,Musk has received approximately $46.5 billion in financing commitment letters from Morgan Stanley, Bank of America and Barclays.Societe Generale, Mizuho and BNP Paribas are also involved. But Musk has yet to determine whether he will make a takeover offer to Twitter or whether he will take other steps to move the proposal forward.

thereinto Half of it is Musk himself out of his own pocket $21 billion in cash, previously interpreted by the media as a personal entertainment "show";The other half was raised about $25.5 billion in debt financing from these banks。 In debt financing, fixed-term debt is approximately $6.5 billion, rollover debt is approximately $500 million, secured bridge debt and unsecured bridge debt are both $3 billion, and leveraged loans are approximately $12.5 billion.

Musk currently has about $3 billion in cash or other somewhat liquid assets after spending $2.6 billion on a 9.1 percent stake in Twitter in recent months, according to Bloomberg calculations. It's unclear whether Musk will sell tesla-owned shares to buy Twitter, but according to sources, Musk is still considering bringing in potential equity partners and has spoken to some interested investors.

Twitter responded on the same day that it had received Musk's "latest, non-binding proposal" that "provides additional information about the original proposal and new information about potential financing" and that Twitter will conduct a careful and comprehensive review to determine what it believes is in the best interests of the company and all Twitter shareholders. But people familiar with the matter say Twitter is still likely to reject its bid in the coming days.

Meanwhile, Musk said he is considering launching a bid offer because he has yet to receive feedback from Twitter's board on his bid. According to documents filed Thursday, he is seeking negotiations on a definitive deal to buy Twitter and is prepared to begin such talks immediately. Previously, Musk had said his first offer was his "best and final offer."

Last week, Musk proposed to buy Twitter at $54.20 per share, and Twitter passed its "poison pill plan" on April 15, local time, to resist the acquisition intention. Wall Street Insights earlier article analysis said that Musk needs a total of $43 billion to fully pocket Twitter, even if Musk already holds 9.1% of Twitter's stock, Musk also needs $36 billion of funds can only be out of his own pocket - to reduce Tesla and SpaceX shares, or to pay friends - through private institutions to raise funds.

Twitter shares were pulled higher in early trading thursday after falling more than 2 percent at one point, closing up 0.73 percent at $47.08, below musk's proposed price of $54.20.

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