Elon Musk Appears to Have Secured Financing for Twitter Tender Offer
April 22, 2022
According to papers filed with U.S. securities regulators,
billionaire Elon Musk appears ready to continue his bid to take over
Twitter, this time via a tender offer that would bypass the
company's board and offer to buy stock directly from shareholders.
Twitter's board of directors last week voted unanimously to use a
tactic called a "poison pill" to fend off Musk's attempt to acquire
The papers show Musk, CEO of Tesla and SpaceX, has secured $46.5
billion in financing for the offer of $54.20 per share.
Twitter "is committed to conducting a careful, comprehensive and
deliberate review to determine the course of action that it believes
is in the best interest of the Company and all Twitter
stockholders," the company said in a statement Thursday.
The news only shows Musk could go forward with a tender offer, but
apparently no decision has been made.
In addition to Musk, Morgan Stanley, Barclays, Bank of America,
Societie Generale, Mizuho Bank, BNP Paribas and MUFG could be
involved in the deal.
They have reportedly agreed to finance $25.5 billion of the deal
while Musk could cover the rest.
Twitter stock was trading flat on the development.
the poison pill plan, all Twitter shareholders except Musk could buy
more shares at a discount. This would dilute the world's richest
person's stake in the company and prevent him from recruiting a
majority of shareholders supporting his move.
If Musk's ownership in Twitter grows to 15% or more, the poison pill
would go into effect.
Last week, Musk, who was revealed as the company's largest
individual shareholder, with 9.2% of the shares, later offered more
than $43 billion, or $54.20 per share, to purchase the entire
Musk's offer would provide a substantial premium over Twitter's
current stock price.
When Musk made his offer, he lamented the company's stance on free
"I believe free speech is a societal imperative for a functioning
democracy," Musk said in the filing. "I now realize the company will
neither thrive nor serve this societal imperative in its current