Elon Musk tells lenders and banks that he would close the Twitter deal by Friday, raises $13 billion as debt- Technology News, Firstpost
Mehul Reuben DasOct 26, 2022 10:50:13 IST
It seems that Elon Musk is finally going to close the Twitter deal rather soon. In a closed-door meeting with investors, banks and other lenders, Musk reportedly said that he is going to close the deal with Twitter by this Friday, and will soon be signing the papers necessary to get the deal closed.
In the process, Musk was also able to raise $13 billion as a loan from banks and lenders to go ahead with the transaction. All of this implies that the only thing left to do is for Musk and Twitter’s teams to get the papers signed and filed to the relevant authorities. According to people familiar with the matter, this will be the final stage before the funds are given to Musk.
The banks handling the debt received a borrowing notice on Tuesday. According to people familiar with the matter, the cash is expected to be held in escrow on Thursday.
Sources claim that the investors who are backing Musk in his acquisition bid to buy Twitter include equity investors like Sequoia Capital, Binance, Qatar Investment Authority and others.
The banks that committed to funding Musk’s buyout of Twitter have finished putting together the final debt financing agreement and are in the process of signing the necessary documents.
When the news broke out that the deal will finally be closed this week, Twitter shares jumped on the news and were trading up 3% at $52.95 on Tuesday, closer to Musk’s offer price of $54.20.
If everything goes through the way it is supposed to, Musk will need to provide $46.5 billion in equity and debt financing for the acquisition, which covers the $44 billion price tag and closing costs.
If no new issue comes up this week that could potentially derail the acquisition process, Musk will be holding up his side of the bargain of finishing up with the acquisition process by October 28, the deadline that was set by the Delaware Court listening to the arguments in the Twitter v. Musk case.
As reported earlier, there is a very slight, albeit real possibility that the US government may have to step in and stop the acquisition from going through, by invoking national security. As slim as those chances are, there is a very good reason as to why the US government may consider doing that.
Twitter, meanwhile hasn’t responded to the developments and is waiting for an actionable moment to respond to this.