Musk needs to secure an additional $22.4-billion of funds to cover the equity financing portion of his deal to buy the social media company.
himself some time on Thursday, after a judge accepted the billionaire’s request to halt a Twitter lawsuit to allow him to close his proposed US$44-billion buyout of the social media company by 28 October.Musk said earlier this week he would buy Twitter for $54.20/share, the price that was agreed in April, but included a condition that the closing of the deal be contingent on debt financing for the transaction coming through.Musk has pledged to provide $46.
Musk’s $33.5-billion equity commitment would include his 9.6% Twitter stake, which is worth $4-billion, and the $7.1-billion he secured from equity investors, including Oracle co-founder Larry Ellison and Saudi Prince Alwaleed bin Talal. Musk, 51, is the world’s richest person with a net worth of $219=billion according to Forbes, but a large portion of his fortune is tied to his stakes in Tesla and SpaceX.Musk has about $20-billion of cash after selling down part of his Tesla stake through multiple transactions in November and December last year and April and August this year. This means he would need to raise an additional $2-billion to $3-billion, even if the other equity and debt commitments are honoured.
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