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Elon Musk pledges more equity to fund Twitter deal

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Elon Musk on Wednesday pledged a further $6.25 billion in equity financing to fund the $44 billion offer for Twitter, reducing the billionaire’s margin loan against his Tesla shares to zero.

The disclosure made in a regulatory filing on Wednesday signaled Musk is working to finish the deal despite the fact that he had last week linked its progress to Twitter presenting proof that spam bots accounted for lower than 5% of the full users.

While doubting that spam bots accounted for at the least 20% of the users, the world’s richest man and Tesla top boss had suggested he could seek a cheaper price for the social media company. 

Musk said on Wednesday he was also in talks with shareholders, including Jack Dorsey, for extra financing commitments to fund the deal.

Twitter shares jumped around 6% to $39.15 in prolonged trading. Musk couldn’t be immediately reached for comment.

Musk said he was also in talks with shareholders, including Jack Dorsey, for extra financing commitments to fund the deal.REUTERS

He initially took a $12.5 billion margin loan, but earlier this month reduced it to $6.25 billion after bringing in co-investors.

In April, Musk had lined up $46.5 billion in debt and equity financing to purchase Twitter, with Musk himself committing $33.5 billion. 

After Musk’s offer, Twitter’s board initially voted to adopt a poison pill that limited his ability to boost his stake, but later voted unanimously to just accept his buyout offer.

Twitter last week said it was committed to the deal on the agreed price of $54.20. Individually, at an annual shareholder meeting on Wednesday, Twitter investors blocked the re-election of an ally of Musk to its board. 

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