Elon Musk is in talks with investors about taking up more financing for his $44bn Twitter bid, which might tie up less of his own personal wealth within the deal, in accordance with a report.
The Tesla boss, who’s the world’s richest person, has been in talks with large investment firms and “high-wealth individuals” to hitch his purchase of the platform, says Reuters.
These reportedly include former Twitter CEO Jack Dorsey, who could roll his 2.4 per cent stake within the social media platform into the deal, fairly than money out his almost $1bn price of shares.
Mr Musk has a private wealth of around $249bn, but he has publicly admitted that the majority of his wealth is tied up in shares of the electrical vehicle maker and in SpaceX.
The entrepreneur last week sold $8.5bn price of Tesla stock, in a addition to $16bn of shares that he sold in 2021.
Twitter’s board on Monday accepted Mr Musk’s offer of $54.20 per share in money for total control of the corporate, that he has said he’ll take private.
The deal, which was unanimously really useful by the board, still must be ratified by shareholders and pass regulatory scrutiny.
Mr Musk, who has not confirmed exactly why he sold the shares, already owns nine per cent of Twitter.
He has put up $21bn of his own money to purchase the social media company and is borrowing one other $12.5bn, while Morgan Stanley is funding one other $13bn.
The 50-year-old is Tesla’s largest shareholder with a 17 per cent stake.
An individual acquainted with the talks told Reuters that the brand new financing could “are available in the shape of preferred or common equity, could reduce the $21 billion money contribution that Musk has committed to the deal in addition to a margin loan he secured against his Tesla shares.”
Reuters says that Mr Musk has also been in talks with Twitter’s major shareholders about rolling their stake in the corporate into the deal, fairly than cashing them out.
This reportedly also includes company co-founder and former CEO Jack Dorsey, who’s “examining” if he’ll roll over his shares, price around $978bn on the agreed $54.20 share price.
Large institutional investors, reminiscent of Fidelity, are also in talks about rolling over their stake, in accordance with Reuters.
Reuters contributed to this report.