Elon Musk won’t take loan against Tesla shares to buy Twitter
The tech giant, Tesla owner Elon Musk has committed to providing an additional $6.25 billion in equity financing for his $44 billion Twitter takeover, bringing his total equity commitment to $33.5 billion.
Musk’s original plan was to acquire Twitter with a combination of $21 billion in personal equity and $25.5 billion in loans and $12.5 billion of those loans were secured against Tesla shares owned by Musk.
As per reports, the Twitter stock went up in after-hours trading after the news broke late on Wednesday.
Earlier, the Tesla stock had plunged more than 30 percent after Musk announced to fund his Twitter buyout by borrowing against his Tesla ownership stake.
In a fresh filing with the US Securities and Exchange Commission (SEC), Musk announced the expiration of a series of margin loans against Tesla stock.
According to the new SEC filing, “(Elon Musk has) committed to an increase the aggregate principal amount of the equity commitment thereunder to $33.5 billion.”
However, it is not clear where the additional $6.25 billion will come from.
Musk has put the Twitter deal on hold, complaining about the number of fake and spam accounts on the platform.
The Tesla CEO has secured nearly $7.14 billion in equity commitments from friends and other investors to acquire Twitter. Musk received $1 billion from Oracle co-founder Larry Ellison and $5 million from Honeycomb Asset Management, which invested in his SpaceX company.
[With Inputs from IANS]
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