# Musk secures $46.5 billion in funding for Twitter bid
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-04-21
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Elon Musk lines up $46.5B financing for Twitter buyout
Meta Description: Elon Musk secures funding to acquire Twitter Inc, offering $43 billion in cash. Musk commits to $33.5 billion personally for the deal.
URL: https://financedigest.com/musk-secures-46-5-billion-in-funding-for-twitter-bidhtml

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By Nivedita Balu

(Reuters) -Elon Musk on Thursday said he has lined up $46.5 billion in debt and equity financing to buy social network company Twitter Inc and is considering taking his offer directly to shareholders, a filing with U.S. regulators showed.

Musk himself has committed to put up $33.5 billion, which will include $21 billion of [equity](https://www.financedigest.com/uk-investors-add-1-2-billion-to-equity-funds-in-march-calastone.html "UK investors add .2 billion to equity funds in March – Calastone") and $12.5 billion of margin loans against some of his Tesla Inc. [shares to finance](https://www.financedigest.com/sas-bridge-financing-keeps-survival-hopes-airborne-shares-climb.html "SAS bridge financing keeps survival hopes airborne, shares climb") the transaction. He is [chief executive officer](https://www.financedigest.com/host-analytics-appoints-chris-labruna-as-chief-revenue-officer.html "Host Analytics Appoints Chris LaBruna as Chief Revenue Officer") of automotive company Tesla.

Musk, the world’s richest person according to a tally by Forbes, on April 14 presented a “best and final” cash [offer of $43 billion](https://www.financedigest.com/copper-miner-teck-resources-rejects-glencores-22-5-billion-offer.html "Copper miner Teck Resources rejects Glencore’s .5 billion offer") to Twitter’s board of directors.

Musk’s latest move comes after Twitter failed to respond to his offer and adopted a “poison pill” to thwart the billionaire’s effort to [buy the social media](https://www.financedigest.com/ladbrokes-owner-entain-buys-sports-media-business-365scores.html "Ladbrokes owner Entain buys sports media business 365scores") platform.

Musk, Twitter’s second-largest shareholder with a 9.1 percent stake, has said that he could make big changes at the micro-blogging company, where he has a [following of more than 80 million](https://www.financedigest.com/10-million-to-be-whipped-into-ice-cream-brand-four-winters-following-acquisition.html " Million To Be Whipped Into Ice Cream Brand Four Winters Following Acquisition ") users.

[Shares of Twitter](https://www.financedigest.com/twitter-shares-cruise-towards-musks-offer-price-as-deal-deadline-looms.html "Twitter shares cruise towards Musk’s offer price as deal deadline looms") were down less than 1% on news of the funding, indicating that the market is still skeptical about the deal, given that Twitter is expected to reject him on price.

Shares of Tesla climbed nearly 7% in midday trade, lifted by better-than-expected earnings at the [electric vehicle maker](https://www.financedigest.com/lack-of-electric-vans-opens-door-for-chinese-other-ev-makers.html "Lack of electric vans opens door for Chinese, other EV makers").

[Musk holds 172.6 million shares in Tesla](https://www.financedigest.com/musk-says-tesla-price-cuts-triggered-demand-2023-sales-could-hit-2-million-vehicles.html "Musk says Tesla price cuts triggered demand, 2023 sales could hit 2 million vehicles"), the latest regulatory filing shows. On Wednesday, he qualified for compensation in the form of stock options now worth about $25 billion after Tesla [hit a triplet of profit](https://www.financedigest.com/uks-dominos-expects-tech-investments-to-hit-2023-profit.html "UK’s Domino’s expects tech investments to hit 2023 profit") and revenue performance targets.

It is unclear whether Musk would sell his [stocks in Tesla](https://www.financedigest.com/rivian-stock-less-bruised-than-tesla-as-both-miss-ev-targets.html "Rivian stock less bruised than Tesla as both miss EV targets") to cover the $21 billion equity financing.

Banks, including Morgan Stanley, have [agreed to provide another $13 billion in debt](https://www.financedigest.com/sovereign-debtors-creditors-agree-on-steps-to-jumpstart-debt-restructurings.html "Sovereign debtors, creditors agree on steps to jumpstart debt restructurings") secured against Twitter itself, according to the filing.

A spokesperson for [Twitter acknowledged receipt of Musk’s](https://www.financedigest.com/elon-musk-plans-to-cut-half-of-twitter-jobs-bloomberg-news.html "Elon Musk plans to cut half of Twitter jobs – Bloomberg News") proposal.

As previously [announced and communicated](https://www.financedigest.com/solgari-tenx2-announce-global-growth-partnership-to-deliver-compliant-integrated-omni-channel-cloud-communications-services.html "Solgari& TenX2 announce global growth partnership to deliver compliant, integrated omni-channel cloud communications services") to Mr. Musk directly, the board is committed to conducting a careful, comprehensive and deliberate review to determine the course of action that it believes is in the best interest of the [company and all Twitter](https://www.financedigest.com/elon-musk-who-runs-four-other-companies-will-now-be-twitter-ceo.html "Elon Musk, who runs four other companies, will now be Twitter CEO") stockholders,” the Twitter representative said in a statement.

I suspect it will put pressure on Twitter’s board to either find a White Knight, which is unlikely, or negotiate with Musk to obtain a higher value and remove the poison pill,” said Josh White, assistant professor of finance at Vanderbilt University and a former [financial economist for the Securities](https://www.financedigest.com/5-steps-to-strengthening-your-online-financial-security.html "5 Steps to Strengthening Your Online Financial Security") and Exchange Commission.

Musk, a self-described “free speech absolutist,” has said that the social media company [needs to be taken private to grow](https://www.financedigest.com/55-of-uk-smes-unable-to-access-all-funding-needed-to-grow.html "55% of UK SMEs unable to access all funding needed to grow") and become a platform for free speech.

The offer from Musk has drawn [private equity](https://www.financedigest.com/procurementin-european-private-equity-investment-adding-value-to-the-boardroom.html "Procurement in European private equity investment – adding value to the boardroom.") interest in participating in a deal for Twitter, Reuters reported, citing people familiar with the matter.

Apollo Global Management Inc is considering [ways it can provide financing](https://www.financedigest.com/6-ways-to-finance-your-dream-vacation.html "6 Ways to Finance Your Dream Vacation") to any deal and is open to working with Musk or any other bidder, while Thoma Bravo has informed Twitter that it is exploring the possibility of putting together a bid.

Musk has made a number of announcements on the platform, including some that have landed him in [hot water](https://www.financedigest.com/france-to-turn-off-hot-water-in-public-offices-to-save-energy.html "France to turn off hot water in public offices to save energy") with U.S. regulators.

In 2018, Musk tweeted that he had “funding [secured” to take Tesla private for $420 per share – a move that led to millions of dollars](https://www.financedigest.com/incentive-fm-secures-new-deal-with-dollar-uk.html "Incentive FM Secures New Deal with Dollar UK") in fines and him being forced to step down as chairman of the electric car company to resolve claims from the U.S. [securities regulator](https://www.financedigest.com/uk-finance-regulators-should-pay-heed-to-energy-security-policy-says-sunak.html "UK finance regulators should pay heed to energy security policy, says Sunak") that he defrauded investors.

(Reporting by Nivedita Balu, Uday Sampath and Chavi Meta in Bengaluru; Hyunjoo Jin and Noel Randewich in [San Francisco; Writing by Anna Driver; Editing by Anil D’Silva and Mark Porter)](https://www.financedigest.com/paul-jasper-joins-rimon-laws-san-francisco-office-as-partner.html "Paul Jasper joins Rimon Law’s San Francisco Office as Partner")


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