Tesla boss in talks with investment firms to reduce his $21bn contribution
Elon Musk arrives at the Met Gala at the Metropolitan Museum of Art in New York City, the US, on May 2 2022. Picture: REUTERS/BRENDAN MCDERMID
The new financing, which could come in the form of preferred or common equity, could reduce the $21bn cash contribution that Musk has committed to the deal, as well as a margin loan he secured against his Tesla shares, the sources said. Major investors such as private equity firms, hedge funds and high net-worth individuals are in talks with Musk about providing preferred equity financing for the acquisition, the sources said. Preferred equity would pay a fixed dividend from Twitter, in the same way that a bond or a loan pays regular interest but would appreciate in line with the equity value of the company.
Musk has also been in talks with some of Twitter’s major shareholders about the possibility of them rolling their stake into the deal rather than cashing out, one of the sources said. Former Twitter CEO and current board member Jack Dorsey is examining whether he will roll his take, one source said. The sources requested anonymity because the matter is confidential. Musk, Dorsey, Fidelity, Apollo and Ares did not respond to requests for comment.
Investors have been fretting over whether Musk will complete the Twitter deal given that he has backtracked in the past. In April, he decided at the last minute not to take up a seat on Twitter’s board. In 2018, Musk tweeted that there was “funding secured” for a $72bn deal to take Tesla private but did not move ahead with an offer.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Musk told banks he will rein in Twitter pay, make money from tweets — sourcesElon Musk told banks that agreed to help fund his $44bn (R699bn) acquisition of Twitter that he could crack down on executive and board pay at the social media company in a push to slash costs, and would develop new ways to monetize tweets, three people familiar with the matter said.
Read more »
Twitter says Musk deal uncertainty could cost staff, advertisersTwitter Inc’s $44 billion deal to be acquired by Elon Musk means it risks losing advertisers and employees, who may be concerned about the company’s uncertain future.
Read more »
Big hitter Elon Musk leaves Twitter advertisers antsy after free-speech pitchThere is fear that unbridled free speech could spiral into misinformation and hate speech, leading advertisers to dissociate themselves from Twitter
Read more »
‘Something is off with his energy’: Ntsiki on why she ‘dislikes’ Elon Musk‘Something is off with his energy’: Ntsiki on why she ‘dislikes’ Elon Musk 'He doesn't know you exist': Tweeps just bashed Ntsiki Mazwai for saying she doesn't like the world's richest man Elon Musk.
Read more »