Musk Making Moves – Speculation Of Tender Offer Mounts After $46.5 Billion In Financing Revealed

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Elon Musk Source JD Lasica | commons.wikimedia.org

On Thursday, it was revealed that SpaceX and Tesla CEO Elon Musk had secured $46.5 billion in financing to buy Twitter and make it a private company.

The funding opportunity is expected to help Musk pursue exploring a tender offer, which would allow Musk to buy shares from shareholders directly. If this were to occur, Musk would approach individual shareholders and offer to buy their shares for a specific amount of time. According to a new regulatory filing, Musk is still considering making a tender offer.

As the richest man in the world, Musk is planning on funding this effort with $21 billion in equity financing. Additional capital has been secured through debt financing, which includes Morgan Stanley, Bank of America, Barclays, and other financial institutions.

According to the offer, “Twitter hasn’t responded to the proposal. Given the lack of response by Twitter [Musk] is exploring whether to commence a tender offer to acquire all of the outstanding shares.” The filing also said Musk, “has not determined whether to do so at this time.”

These events come after Elon Musk made a bid to buy all of Twitter for $54.20 a share, which would have given the company a $43 billion valuation. In response to Musk’s offer Twitter’s board voted to enact the now-famous “poison pill,” which was designed to halt a takeover of the company.