Musk pledges more equity to fund Twitter deal, scraps margin loan
Elon Musk arrives at the In America: An Anthology of Fashion themed Met Gala at the Metropolitan Museum of Art in New York City, New York, U.S., May 2, 2022. REUTERS/Andrew Kelly/Files
Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.
(Reuters) -Elon Musk on Wednesday pledged an additional $6.25 billion in equity financing to fund the $44-billion offer for Twitter Inc, reducing the billionaire's margin loan against his Tesla Inc shares to zero.
The disclosure made in a regulatory filing on Wednesday signaled Musk is working to complete the deal even though he had last week linked its progress to Twitter presenting proof that spam bots accounted for less than 5% of the total users.
While doubting that spam bots accounted for at least 20% of the users, the world's richest man and Tesla top boss had suggested he could seek a lower price for the social media company.
Musk said on Wednesday he was also in talks with shareholders, including Jack Dorsey, for additional financing commitments to fund the deal.
Twitter shares jumped around 6% to $39.15 in extended trading. Musk could not be immediately reached for comment.
He initially took a $12.5-billion margin loan, but earlier this month reduced it to $6.25 billion after bringing in co-investors.
In April, Musk had lined up $46.5 billion in debt and equity financing to buy Twitter, with Musk himself committing $33.5 billion.
After Musk's offer, Twitter's board initially voted to adopt a poison pill that limited his ability to raise his stake, but later voted unanimously to accept his buyout offer.
Twitter last week said it was committed to the deal at the agreed price of $54.20. Separately, at an annual shareholder meeting on Wednesday, Twitter investors blocked the re-election of an ally of Musk to its board.
(Reporting by Eva Mathews and Richard Rohan Francis in Bengaluru; Editing by Arun Koyyur)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Twitter (TWTR) Agreed to Give Musk More Data Earlier This Week - Business Insider
- Three dead in Amtrak train crash and derailment in Missouri
- Ceragon (CRNT) Acquired by Aviat Networks (AVNW) for $2.80/sh Cash
Create E-mail Alert Related CategoriesGeneral News, Mergers and Acquisitions, Reuters, Trader Talk
Related EntitiesTwitter, Tesla
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!