Musk may acquire Twitter – funding secured

Musk may acquire Twitter – funding secured

New York, 10/26/2022

Elon Musk has announced that he plans to complete his $44 billion acquisition of Twitter on Friday. Wall Street lenders helping to finance the acquisition are now in the process of signing a loan agreement, one of the final steps before banks can wire Musk the money.

The banking group, led by Morgan Stanley, is providing $13 billion in debt financing for the deal. In addition, Musk has raised at least $7 billion from a range of capital providers, including Fidelity, Brookfield, Sequoia Capital, Oracle co-founder Larry Ellison and Saudi Prince Alwaleed bin Talal. Musk’s lawyers have now sent funding commitment documents to investors.

In April, Musk offered to take Twitter private for $44 billion, or $54.20 per share, which was accepted by Twitter’s board. He later tried to back out of the deal, citing a lack of data on the number of fake and spam accounts on the platform and other problems.

Twitter sued Musk to force him to complete the transaction. The trial was scheduled to begin Oct. 17 in the Delaware Court of Chancery. Judge Kathleen McCormick granted Musk’s motion to stay the trial and gave him until Friday, Oct. 28, to finalize financing for the deal.