Elon Musk says he has secured the money to buy Twitter

Shannon Bond

April 21, 2022 / 8:31 am

caption: Tesla CEO Elon Musk speaks during the official opening of the new Tesla electric car manufacturing plant on March 22, 2022 near Gruenheide, Germany.

Elon Musk says he's secured money for his bid to take Twitter private and is considering making his pitch directly to shareholders.

Musk, who recently became the social media company's largest individual shareholder, told Twitter's board last week he wanted to buy the entire company but he didn't say how he would pay for it.

Now, in a new filing with the Securities and Exchange Commission, the billionaire Tesla CEO says he's lined up $46.5 billion to fund his offer of $54.20 a share.

Morgan Stanley, Bank of America, and several other banks have promised to lend him $25.5 billion, according to the filing.

Musk, who is the richest person in the world, says he will cover the remaining $21 billion himself. Most of his wealth is tied up in shares of Tesla and SpaceX, the rocket company he also runs.

Musk also said in his filing that Twitter has not formally responded to his overtures. He "is seeking to negotiate a definitive agreement for the acquisition of Twitter," the filing said, "and is prepared to begin such negotiations immediately."

Given the lack of response, the filing said, Musk is exploring whether to go directly to Twitter investors with a tender offer to buy their shares for $54.20 a piece.

Twitter released a statement on Thursday saying the board has received Musk's proposal and "is committed to conducting a careful, comprehensive and deliberate review to determine the course of action that it believes is in the best interest of the Company and all Twitter stockholders."

The board already has thrown hurdles in Musk's path. It has adopted a defensive measure known as a "poison pill" to fend off Musk and give directors more time to consider what to do.

Formally known as a shareholder rights plan, the poison pill would make it more expensive for Musk, who owns 9% of the company, or anyone else to increase their stake to 15% or more. It's designed to ward off hostile moves like making a tender offer directly to shareholders.

But if enough shareholders find Musk's bid attractive, they could pressure the board to get rid of the poison pill and reach a deal with the billionaire.