According to The Verge report, Musk offered $46.5 billion to buy 100 percent of Twitter, and most of this amount will be provided through loans. Morgan Stanley Senior Funding offered two debt commitment letters and committed to bringing a series of loans worth $25.5 billion. Musk will also pay the remaining $21 billion through his personal wealth. Musk didn’t mention if he has any partners to share the cash burden with them in the filing. Of course, Musk is the wealthiest person on the planet, and he has no difficulty paying the $21 billion. Also, his share on Twitter is worth around $2.9 billion. Twitter still hasn’t officially responded to Musk’s offer. As the filing says, “The Reporting Person is seeking to negotiate a definitive agreement for the acquisition of Twitter by the Reporting Person.” However, the board of directors doesn’t seem happy with Musk’s plans to take over Twitter. They have recently filed a “shareholder rights plan” to block the offer. After Elon Musk refused to join Twitter’s board and saw the board’s efforts to block his offer, he said he “would need to reconsider [his] position as a shareholder.”
Twitter takeover is not an easy thing for Elon Musk
You might think that for a man with over $249 billion in fortune, paying $46.5 billion to buy 100 percent of Twitter would be a piece of cake. However, it’s not that easy, and Musk may even need co-investors. He can use multiple ways to provide the money for taking over Twitter, including borrowing against his stock. But some financial limitations can hinder Musk’s maneuver. Also, much of Musk’s wealth is tied to Tesla stock, and if Tesla’s stock falls, Musk’s wealth will fall too. Co-investors may also not be interested in investing in Twitter for some reason. First, Twitter has experienced an unstable financial situation in recent years. Second, Musk has already made it clear that he does not view Twitter as “a way to make money.” Musk has said that defending the freedom of speech and loosening Twitter moderation policies are his main incentives to buy the company. “I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy.”
