Free speech absolutist and tech tycoon Elon Musk has secured $46.5 billion in his bid to acquire Twitter and take the company private, new documents filed with the SEC confirm.
Earlier this week Valiant News reported that Musk was believed to be planning a hostile takeover of Twitter via a tender offer directly to the company’s shareholders, bypassing the board’s ability to shut the African American billionaire down.
Now, Musk has disclosed $46.5 billion in financing according to an FEC filing earlier today, per Yahoo News.
The financing, as predicted, “includes commitments from Morgan Stanley” and other banks.
According to the filing, Musk “is exploring whether to commence a tender offer to acquire all of the outstanding shares of [Twitter’s] Common Stock” for the price he quoted earlier this month, $54.20 per share, “but has not determined whether to do so” as of today.
Previously, it was reported that Musk plans for his tender offer to commence on Friday, April 29.
The SEC filing would seem to contradict claims by sources who spoke to the New York Post, which claimed some investors were “skittish” about Musk’s Twitter buyout plan because of the billionaire’s supposed history of “unpredictable behavior and taste for controversy.”
The paper speculated that Musk may have to borrow against his existing Twitter stock or his Tesla stock to generate enough liquid capital, though today’s filing would seem to indicate Musk availed himself to some of these options. Per Yahoo:
The financing package Musk has lined up (for what the filing calls “Project X”) comprises $21 billion in equity financing, $13 billion in debt facilities and $12.5 billion in margin loans. In addition to Morgan Stanley, other banks participating in the financing include Bank of America, Barclays, MUFG, Societe Generale, Mizuho Bank and BNP Paribas.
In his filing, Musk stated that the tender offer may become necessary due to a lack of action on behalf of Twitter’s board. Pundits have questioned whether the board may be breaching its fiduciary duty to shareholders by refusing to respond to Musk’s offer.
So far, Musk has acquired just over 9% of the company. He made an offer to buy Twitter for $54.20 per share, about $43 billion, last week, and Twitter’s board subsequently swallowed a poison pill to buy the board more time and potentially dissuade Musk’s allies from going along with his plan. Before that, the Saudi Arabian royal who owns a significant stake of Twitter claimed Musk is not offering enough money.
Musk says he a “free speech absolutist,” making his offer to buy Twitter a cause celebre among the platform’s many political users.
Those on the right have expressed hope that the Tesla and Space X founder would allow banned individuals – like 45th President Donald Trump – to return to Twitter should the takeover succeed.
Many on the left, meanwhile, insist that Musk’s pro-free speech absolutism may pose a danger to democracy.
