Elon Musk raised to $33.5 billion the amount contributed directly by the entrepreneur and his partners for the takeover of Twitter, further lowering the amount borrowed from banks. The announcement, made on the night of May 25 to 26, caused the action of the blue bird group to soar in trade after the close of Wall Street. Around 11 p.m. GMT, the title took more than 5%.
The CEO of Tesla had initially subscribed for 25.5 billion credits. It lowered those borrowings to $13 billion, according to a document filed by the US Securities and Exchange Authority (SEC) on Wednesday, significantly easing its financial burden.
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At the beginning of May, several existing shareholders of Twitter had already agreed to contribute their shares to the operation and thus remain a minority within the capital once the company is delisted. The valuation of their titles reduced the envelope that Elon Musk had to put on the table.
On Wednesday, the SpaceX founder announced that he had received new direct commitments, which allowed him to reduce the amount of loans taken out for the acquisition by an additional 6.25 billion. He did not specify whether this amount came, in whole or in part, from his personal assets, or whether other investors had joined him. But he said he was in discussions with several people, including co-founder and former chief executive Jack Dorsey, with a view to getting them on board and getting their contribution, either in cash or in Twitter shares, which could still reduce the amount borrowed.
“Elon Musk is simply changing the funding structure. This is a step forward, it partly reduces the pressure on the debt side”commented expert Dan Ives, of Wedbush, on Twitter:
“The high stakes poker game continues. The odds of the deal going through are now 50/50, down from 40/60, in our view. »
The $12.5 billion in loans that were ultimately not needed had worried some analysts because they were loans backed by Tesla securities. They thus created a link with the car manufacturer, which had displeased the market.
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Since the revelation of Elon Musk’s stake in the capital of Twitter in early April, the group has lived to the rhythm of the many twists and turns of the case and the billionaire blows hot and cold. Last week, he notably announced that he was suspending the operation because he wanted to ensure “that spam and fake accounts really accounted for less than 5% of the number of users”.. before reiterating its commitment to acquire the social network.
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Elon Musk, who has more than 95 million subscribers to his profile, says he wants to make the platform a bastion of freedom of expression, following the vision of the American right, which considers itself censored by social networks.