Elon Musk is changing the deal with Twitter again. He will attract more investors instead of loan assets
Musk once again revised the Twitter acquisition agreement and increased the share financed by investors and his own money, writes Bloomberg. It is now $33.5 billion. We will remind, the total amount of the deal is $44 billion.
Thus, the billionaire provides an additional $6.25 billion in funding and reduces the share of loan assets by the same amount. As the deal was to be part-financed by a loan tied to Musk’s stake in Tesla, this reduces the risk for him and his creditors. This is especially important against the background of the recent fall in shares of Tesla. After Musk first announced his stake in Twitter in early April, they fell 40%.
However, Elon Musk is still looking for the full amount of $33.5 billion. He is likely to turn to investors for help. It is already known that the billionaire is in talks with Twitter founder Jack Dorsey and others. Earlier this month, he received $7.1 billion from billionaire Larry Ellison, Sequoia Capital, and Binance.
After the announcement of the new terms of the deal by Musk, Twitter shares rose by 6.8%. At the same time, Tesla shares fell 1.4%. The shares of the social network are now worth about $37. It is still much less than the $54.2 offered by Musk.