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Twitter’s board of directors has not responded to Elon Musk’s purchase proposal for the company, so now he’s proceeding with his ‘plan B’ to purchase the company.
Elon Musk is exploring whether to commence a tender offer for Twitter, according to a new securities filing.
In an updated filing published on Thursday, Musk said that given the lack of response from Twitter’s board, he is now exploring a tender offer to purchase some or all shares of the company directly from its shareholders.
The filing says Musk has received commitments for $46.5 billion to help finance the potential deal. Musk has secured about $25.5 in debt financing through Morgan Stanley Senior funding and other firms, and Musk said he has committed about $21 billion in equity financing. The other participating firms include Bank of America, Barclays, MUFG, Societe Generale, Mizuho Bank and BNP Paribas.
Musk has not yet determined he will make a tender offer for Twitter or whether he will take other steps to further the proposal, the filing states.
Representatives from Twitter didn’t immediately respond to a request for comment.
I won’t claim to understand how all of this works because, honestly, I hated finance class in college.
I just hope he’s able to purchase enough shares from the shareholders in order to make this takeover happen or to gain enough that gives him a solid negotiating position with the board.
Musk says he doesn’t like to lose and I think much of the country is pulling for him to win.
Yesterday Musk teased this news with a cryptic tweet:
🎶 Love Me Tender 🎶
— Elon Musk (@elonmusk) April 16, 2022