New reporting from NBC News, based on a court filing submitted today, the controversial Tesla CEO Elon Musk says he has now acquired a staggering $46.5 billion in financing, mostly consisting of borrowed money, that he intends to use to purchase the Twitter social media platform.
According to the court filing, Musk will be able to secure a loan in the amount of $25.5 billion from a group of banks led by Morgan Stanley, as well as an additional $12.5 billion that’s pledged against the value of Elon’s Tesla shares.
In turn, the Tesla CEO would fork over $21 billion in equity financing.
As it stands, Elon Musk recently became Twitter’s largest individual stock shareholder, maintaining a 9 percent stake in the popular social media company as he continues to publicly rail against Twitter’s current management and their lack of “free speech,” in his opinion.
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Musk put in an offer on the popular platform earlier this month, in the amount of $43 billion. However, not only did the social media company turn down Musk’s offer, the witter board of directors voted unanimously to adopt a “poison pill” provision, formally known as a shareholder rights plan, that would prevent Musk from completing a hostile takeover of the company.
NBC News explains:
The ‘pill’ would be triggered if Musk attempts to buy at least 15 percent of Twitter shares on the open market; currently, the Tesla CEO owns about 9 percent of its stock.
Should the 15-percent threshold be crossed, Twitter’s other shareholders — excluding Musk — would be granted the right to purchase additional shares at a discounted price, diluting the overall value of Twitter’s stock.”
In an effort to counter the pill, the Tesla CEO and tech mogul said today that he is exploring his options in regard to a so-called tender offer that would allow him to secure all of Twitter’s stock shares from current shareholders.
If Musk is successful in either his new, higher bid for the company or his loophole takeover of the company’s stocks, it could very well open an avenue for former President Donald Trump to make a comeback on what used to be his favorite social media platform, as Musk rallies around the notion of “Free Speech” and Trump’s rabid supporters call on the tech giant to make the reappearance of Donald Trump on Twitter his number one, first move as the new owner.
Featured image via Flickr/Gage Skidmore, under Creative Commons license 2.0
