Elon Musk has received extra funding to acquire Twitter, according to the filings | Twitter

Elon Musk has received additional funding to buy Twitter, which, according to financial documents released Wednesday, moved the millionaire closer to concluding the top deal.

The Tesla CEO said it had increased its personal funding for the purchase from $ 27.3bn to $ 33.5bn, added $ 6.25bn to its equity financing, and reduced the amount of business entrepreneur borrowing to $ 44bn.

The world’s richest man is in talks with shareholders, including former shareholders Twitter CEO Jack Dorsey, for additional financial obligations to finance the contract, he filed.

Musk first received a $ 12.5 billion margin loan against shares of his electric car maker Tesla to finance his Twitter acquisition. But he cut it to $ 6.25bn earlier this month after bringing in co-investors.

The latest filing comes after Musk said last week that his offer to buy Twitter would not go ahead until the company showed evidence that less than 5% of the site’s total users contain spam bots, analysts say, urging Twitter to accept the move. Low selling price.

Details of Musk’s financial plans were released on the day when Twitter shareholders gathered for their regular meeting.

The referendum on Musk’s plan to buy the social media site is not on the agenda, but will take place on an undecided date in the future.

However, shareholder proposals for the referendum were often made in the name of the Tesla CEO.

At the meeting, investors initially approved the New York State Public Pension Fund’s proposal, which called for a report on Twitter’s policies and practices surrounding political contributions to the use of corporate funds.

See also  NATO warplanes intercepted a Russian plane near Estonian airspace

Two projects brought in by Conservative leaning groups failed to get enough votes to pass. One called for an audit of the company’s “implications for civil rights and non-discrimination” and described “anti-racist” programs that seek to establish “ethnic / social equality” as “deeply racist in themselves.” Others sought to expose the company’s campaign activities.

Many projects talk about the deep existential conflict that exists between Twitter’s users, employees and stakeholders.

The term of a co-founder of Twitter co-founder Jack Dorsey’s board member ended Wednesday. Patrick Pichette, public shareholder of Inovia Capital, was re-elected to the Investors Group.

Investors also blocked the re-election of Musk’s partner to the group, which voted against Akon Durban, who co-chaired Silver Lake, a private equity firm, and joined Musk in an attempt to privatize the electric car maker.

“The Twitter board did not embrace Elon Musk and his vision for Twitter, so it’s not surprising that he was removed from his partner group,” said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh.

The vote on Durban’s stake could indicate skepticism among Musk’s plan stakeholders or his willingness to pay for what he has offered, but investors are expected to largely approve the deal.

Twitter’s group initially voted to accept the “poison pill”, which limited Musk’s ability to increase his stake in the company, but later voted unanimously to accept his purchase offer.

Kasturi in April Reached a deal Buy Twitter for $ 54.20 a share. But the Tesla CEO said the deal was in May Can not progress Until the operating system proves that less than 5% of its users are fake or spam accounts.

See also  First Republic Bank shares hit new lows on report that government is reluctant to intervene

The sharp turnaround makes little sense, except as a tactic to break a deal that is increasingly expensive for him or to negotiate again, experts said last week. Playing discussions in public, no less on Twitter, adds to the confusion.

Experts say Musk cannot unilaterally suspend the deal. If Musk leaves, he could receive a $ 1bn breakup fee. Alternatively, Musk could sue to force Twitter to pursue the deal, although experts say that is not possible.

Donna Hitcherich, a professor of finance at Columbia Business School, said that even if shareholders approve the proposals, it will remain unrestricted.

Shares of Twitter rose about 6% to $ 39.15 in extended trading.

Musk was not immediately available for comment on the details of the regulatory finding.

Leave a Reply

Your email address will not be published. Required fields are marked *