Elon Musk says he has planned to raise $46.5 billion worth of funding to purchase Twitter and is currently trying to negotiate a deal with Twitter. This week, Musk announced that he would buy the social media giant for $54.20 per share, approximately $43 billion. He didn’t mention how he would fund the purchase.
On Thursday, the Tesla CEO announced in documents submitted to US Securities regulators that he’s looking into what’s known as a tender deal to purchase all of the social media company’s common stock at $54.20 for each share in cash.
If a delicate deal is made, Musk, who owns approximately 9 per cent of Twitter shares, could make an offer to shareholders and bypass the board.
However, Musk hasn’t yet decided whether to go ahead with that.
The documents claim Twitter hasn’t yet replied to Musk’s suggestion.
Last week, the Twitter board decided to adopt the “poison pill” defence that could render any attempt to take over prohibitively costly.
The document states that “entities related to (Musk) have been issued commitment letters to contribute an amount of about $46.5 billion”.