New Filing Reveals Musk’s Plan to Front $33.5 Billion in His Bid to Acquire Twitter
In a significant development, shares of Twitter are trading sharply higher in after-hours sessions following the release of a new U.S. Securities and Exchange Commission (SEC) filing detailing changes to Elon Musk’s approach to buying the company.
A Brief Recap of the Complex Transaction
Elon Musk initially planned to execute a margin loan of $12.5 billion against other holdings to help finance his purchase of Twitter. However, this plan has lapsed, and according to Twitter, "[c]oncurrently with the foregoing, [Elon Musk has] committed to … increase the aggregate principle amount of the equity commitment thereunder to $33.5 billion."
What This Means for the Deal
In simple terms, Musk now plans to front $33.5 billion in his bid to take over Twitter. The Tesla and SpaceX CEO is reportedly in talks with former Twitter CEO Jack Dorsey and others to help finance the deal or roll their shares over.
A Brief History of the Deal
The transaction between Musk and Twitter has been a complex one, with its fair share of twists and turns. Initially, Musk purchased a stake in Twitter and nearly joined the company’s board. However, he later decided to pursue an outright acquisition of the platform. The per-share price set for Twitter stock was $54.20, valuing the company at around $44 billion.
Market Reactions
The market reaction to the deal has been just as complex. After the deal was agreed upon, shares of Twitter rose to the $50 range, but fell to the $37 mark as the transaction’s certainty began to wane. With more news that Musk is still working towards the transaction’s financing, investors are betting with their wallets that the deal will go through.
The Filing and Its Implications
The new SEC filing reveals that Musk has indeed committed to increasing the aggregate principle amount of the equity commitment to $33.5 billion. While this might seem like a positive development for the deal, it also indicates some doubt amongst the public market regarding Musk’s ability to actually purchase Twitter.
Other Developments Affecting Twitter
Beyond general economic headwinds, a dramatic shakeup has seen Dorsey step down from Twitter’s board and shareholders vote not to reelect Silver Lake co-CEO Egon Durban to the board. Additionally, Twitter agreed to pay $150 million to settle with the U.S. Department of Justice and the Federal Trade Commission in a user-privacy case involving the mishandling of user data over several years.
Topics of Discussion
- Elon Musk: The CEO of Tesla and SpaceX, who has been at the center of this deal.
- Media & Entertainment: This category encompasses Twitter, which is a social media platform primarily used for entertainment and news dissemination.
Related News
In other news related to the tech industry:
- Apple Brings Store App to Indian Market: Apple has launched its store app in India, marking an expansion of its retail presence in the country.
- FAA Diverts Flights Due to SpaceX Starship Explosion: A recent explosion during a SpaceX test launch forced the FAA to divert flights in the area.
Newsletter Subscription
Stay up-to-date with the latest tech news by subscribing to our newsletters:
- TechCrunch Daily News: Receive the best of TechCrunch’s coverage every weekday and Sunday.
- TechCrunch AI: Get the latest news in artificial intelligence from TechCrunch’s expert team.
- Startups Weekly: Stay informed about the startup ecosystem with our weekly newsletter.
By submitting your email address, you agree to our Terms and Privacy Notice.
