Elon Musk will rely less on debt to buy Twitter: report

Elon Musk will rely less on debt to buy Twitter: report

Twitter shares were shy of $ 40 each in Wednesday’s post-market transaction.

San Francisco:

Elon Musk told U.S. regulators on Wednesday that he would rely less on debt to buy Twitter, as he and his partners put $ 33.5 billion into the deal.

Twitter shares have risen more than 5 percent in the news, as the market has clearly taken it as a sign that the acquisition is moving forward despite Musk declaring it a “hold” due to its concerns about the number of accounts that could be software “bots”. Real people.

The Tesla chief said in a filing with the U.S. Securities and Exchange Commission that he would seek a 13 billion loan to buy Twitter, instead of using almost twice as much as previously indicated.

Musk is reaching out to major Twitter investors, including co-founder Jack Dorsey, in hopes of partnering with the San Francisco-based company to privatize it.

Mask controller said in the filing that he has new commitments that allow him to rely less on loans to buy Twitter, but he did not specify whether he reached his own pocket for the money or won over others with a larger stake in the company.

Analysts were concerned that Musk was using its Tesla shares to repay billions of dollars in loans, meaning that the electric car company’s stock price would be affected by Twitter’s fate.

Wadebush analyst Dan Ives said in a tweet that changing the Musk Twitter buy-financing structure was a “good move” but that the shopping “high-stakes poker game continues.”

Wadebush sees the possibility of buying a mask on Twitter as a double whammy, Ives tweeted.

Twitter’s share price fell on signs that Musk may not complete its company’s purchase at $ 54.20 per share, and the deal rose on indications that the deal is moving forward.

Twitter shares were shy of $ 40 each in Wednesday’s post-market trading, indicating a lack of investor confidence in the original deal.

(Except for the title, this story was not edited by NDTV staff and was published from a syndicated feed.)

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