Exclusive-Musk seeks to put in less money in new Twitter deal financing -sources

2/5/2022 11:00:00 PM

Exclusive-Musk seeks to put in less money in new Twitter deal financing -sources

Exclusive-Musk seeks to put in less money in new Twitter deal financing -sources

:Elon Musk is in talks with large investment firms and high net-worth individuals about taking on more financing for his $44 billion acquisition of Twitter Inc and tying up less of his wealth in the deal, people familiar with the matter said.Musk is the world's richest person, with Forbes estimating his net w

:Elon Musk is in talks with large investment firms and high net-worth individuals about taking on more financing for his $44 billion acquisition of Twitter Inc and tying up less of his wealth in the deal, people familiar with the matter said.Musk is the world's richest person, with Forbes estimating his net worth at about $245 billion. Yet most of his wealth is tied up in the shares of Tesla Inc, the electric car maker he leads. Last week, Musk disclosed he sold $8.5 billion worth of Tesla stock following his agreement to buy Twitter.

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Exclusive-Musk in talks for new Twitter financing-sourcesElon Musk is in talks with large investment firms and high net-worth individuals about taking on more financing for his $44 billion acquisition of Twitter Inc and tying up less of his wealth in the deal, people familiar with the matter said.The banks that agreed last month to provide $13 billion in loans

Exclusive-Musk in talks for new Twitter financing-sourcesElon Musk is in talks with large investment firms and high net-worth individuals about taking on more financing for his $44 billion acquisition of Twitter Inc and tying up less of his wealth in the deal, people familiar with the matter said.The banks that agreed last month to provide $13 billion in loans

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LinkedIn :Elon Musk is in talks with large investment firms and high net-worth individuals about taking on more financing for his $44 billion acquisition of Twitter Inc and tying up less of his wealth in the deal, people familiar with the matter said.LinkedIn Elon Musk is in talks with large investment firms and high net-worth individuals about taking on more financing for his $44 billion acquisition of Twitter Inc and tying up less of his wealth in the deal, people familiar with the matter said.LinkedIn Elon Musk is in talks with large investment firms and high net-worth individuals about taking on more financing for his $44 billion acquisition of Twitter Inc and tying up less of his wealth in the deal, people familiar with the matter said.LinkedIn SYDNEY :Qantas Airways Ltd will announce on Monday a landmark order for Airbus SE A350-1000 jets capable of non-stop flights from Sydney to London as part of a wider deal with the European planemaker, industry sources told Reuters on Sunday.

Musk is the world's richest person, with Forbes estimating his net worth at about $245 billion. Yet most of his wealth is tied up in the shares of Tesla Inc, the electric car maker he leads. Musk committed to providing $21 billion in cash for the deal. Last week, Musk disclosed he sold $8. Musk could use the new financing to reduce his contribution to the equity check for the deal, the sources said.5 billion worth of Tesla stock following his agreement to buy Twitter. Musk has also pledged some of this Tesla Inc shares to banks to arrange a $12. The new financing, which could come in the form of preferred or common equity, could reduce the $21 billion cash contribution that Musk has committed to the deal as well as a margin loan he secured against his Tesla shares, the sources said. Airbus did not immediately respond to a request for comment.

The banks that agreed last month to provide $13 billion in loans based on Twitter's business balked at offering more debt for Musk's acquisition given the San Francisco-based company's limited cash flow, Reuters reported last month. He may seek to trim the size of the margin loan based on the new investor interest in the deal financing, one of the sources said. He may seek to trim the size of the margin loan based on the new investor interest in the deal financing, one of the sources said. Musk has also pledged some of his Tesla shares to banks to arrange a $12.5 billion margin loan to help fund the deal. 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. He may seek to trim the size of the margin loan based on the new investor interest in the deal financing, one of the sources said. Apollo Global Management Inc and Ares Management Corp are among the private equity firms that have been in talks about providing the financing, the sources added. 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. Musk is still deciding whether he will share some his equity check for the deal with potential partners, according to the sources. Source: Reuters.

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. Apollo Global Management Inc and Ares Management Corp are among the private equity firms that have been in talks about providing the financing, the sources added. Musk has also started conversations with some of Twitter's major investors about the possibility of them rolling their stake into the deal rather than cashing out, one of the sources said. Musk has also started conversations with some of Twitter's major investors about the possibility of them rolling their stake into the deal rather than cashing out, one of the sources said. Musk is still deciding whether he will have partners team up with him in writing the equity check needed for the deal, the sources said. Musk is not seeking to take on more debt for the Twitter deal currently, the sources added. The sources requested anonymity because the matter is confidential. 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. Musk, Dorsey, Apollo and Ares did not immediately respond to requests for comment.

Former Twitter Chief Executive and current board member Jack Dorsey is examining whether he will roll his take, one source added. Musk revealed last week he sold $8. Large institutional investors, such as Fidelity, are also in talks about rolling over their stake, according to the source. Musk has tweeted that he would try to keep as many investors in Twitter as possible as he takes the company private. He did not disclose the reason for the move, but investors widely interpreted it as carving out cash for the Twitter deal. He did not disclose the reason for the move, but investors widely interpreted it as carving out cash for the Twitter deal. The sources requested anonymity because the matter is confidential. Musk, Dorsey, Fidelity, Apollo and Ares did not immediately respond to requests for comment. Source: Reuters.

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 $72 billion deal to take Tesla private but did not move ahead with an offer. Twitter shares rose 1.2 per cent to $49.

63 in afternoon trading in New York on Monday, closer to the $54.20 per share acquisition price, as investors interpreted the news on the new financing as more certainty for the deal closing. Musk would have to pay a $1 billion termination fee to Twitter if he walked away, and the social media company could also sue him to complete the deal. Musk, who calls himself a free speech absolutist, has criticized Twitter's moderation policies. He wants Twitter's algorithm for prioritizing tweets to be public and objects to giving too much power on the service to corporations that advertise.

Source: Reuters .