Elon Musk informs that he has Secured the Funding to Acquire Twitter

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Elon Musk informs that he has Secured the Funding to Acquire Twitter
22 Apr 2022
6 min read

News Synopsis

In a regulatory filing published on Thursday, the Chief Executive Officer of Tesla and SpaceX Elon Musk informed that he has agreements from banks and other entities "committing to provide an aggregate of approximately $46.5 billion" in financing for a potential tender offer to acquire the social media platform Twitter. It simply means, Elon Musk is ready to make his pitch directly to shareholders, which would eventually cut out Twitter's board and management. This is the latest development in Musk's effort to take control of the microblogging platform after he first disclosed a roughly 10% equity stake earlier in the month of April prior to offering to buy the company outright for $54.20 per share.

In Thursday's filing, SpaceX's CEO told that Twitter had not yet responded to that offer and that he remains "prepared to begin such negotiations immediately." Elon Musk's efforts to acquire a larger stake in Twitter have been complicated by a "poison pill" defense exacted by Twitter’s directors after Musk opted not to join the company's board as earlier announced. Poison Pill strategy makes a company a less attractive acquisition target by diluting the value of shares as an individual acquires more than a certain equity threshold.

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