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Elon Musk’s SpaceX selling shares possibly to finance Twitter bid


SpaceX is planning to sell existing shares starting Tuesday to a select group of buyers and there is concept Elon Musk is a seller, The Post has learned.

Musk has been trying to boost more cash for his $44 billion Twitter bid and will not be only having a difficult time but finding it expensive, sources near the situation said.

The billionaire could sell SpaceX shares as an alternative to assist fund the acquisition. As of August, the Tesla tycoon owned 44 percent of the SpaceX shares, in line with federal filings.

The tender offer is for existing shares and never latest stock, a personal placement source near the situation told The Post.

The corporate controlled by Musk last raised $337 million in December at a $100 billion valuation.

This time around, the private placement source said, SpaceX goes to hunt $70 a share — a 25 percent increase from its last round, after which there was a ten to 1 stock split — similar to around $125 billion valuation.

Meanwhile, Musk has been scrambling to boost more cash for his Twitter bid.

He’s talking to private equity firms, including Apollo Global Management and hedge funds, about raising $2 billion to $4 billion in preferred financing to switch his margin loans against Tesla, and likewise to switch a number of the Morgan Stanley junior financing he has already arranged, a banking source said.

SpaceX has had 19 rocket launches this yr that placed 53 satellites for its Starlink network, which provides Web access to underserved areas of the world, including war-torn Ukraine.ZUMAPRESS.com

Tesla shares have taken a beating since Musk’s announcement to purchase Twitter last month. The stock closed at $724.37 Monday — after hovering near $1,000 when the deal was announced on April 25.

Morgan Stanley has committed to loan Twitter $3 billion in junior debt to fund the buyout that might cost Twitter a really high 12 percent rate of interest, the banking source said.

Musk’s tweet Friday questioning Twitter’s reporting of its user base will not be going to make raising debt financing any easier, lending sources said.

“Debt shall be rather a lot harder to sell now that he has questioned Twitter’s user base,” the banker said. “He’s undermining their financials.”

On Monday afternoon, Musk said a viable deal to purchase Twitter at a price lower than the $54.20 he agreed to pay April 25 wouldn’t be out of the query.

SpaceX has reportedly had several successful launches in recent months.

This yr, it had 19 rocket launches — including one Friday — that placed 53 satellites for its Starlink network that gives Web access to underserved areas of the world, including war-torn Ukraine.

Last yr, there have been only 31 launches.

SpaceX says it should beat NASA in reaching Mars this decade.

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