Elon Musk Drops Tesla Loans From $44 Billion Twitter Takeover
Twitter stock went up in after-hours trading after the news broke.
In a relief for Tesla shareholders, Elon Musk has committed to provide an additional $6.25 billion in equity financing for his $44 billion Twitter takeover, bringing his total equity commitment to $33.5 billion.
Tesla stock had nosedived more than 30 percent after Musk announced to fund his Twitter buyout by borrowing against his Tesla ownership stake.
In a fresh filing with the United States Securities and Exchange Commission (SEC), Musk announced the expiration of a series of margin loans against Tesla stock.
Twitter stock went up in after-hours trading after the news broke late on Wednesday, reports TechCrunch.
Unclear Where 6 Billion Will Come From
Musk's original plan was to acquire Twitter with a combination of $21 billion in personal equity and $25.5 billion in loans and $12.5 billion of those loans were secured against Tesla shares owned by Musk.
According to the new SEC filing, "(Elon Musk has) committed to a increase the aggregate principal amount of the equity commitment there under to $33.5 billion."
However, it is not clear where the additional $6.25 billion will come from. Musk has put the Twitter deal on hold, complaining about the number of fake and spam accounts on the platform.
The Tesla CEO has secured nearly $7.14 billion in equity commitments from friends and other investors to acquire Twitter.
Musk received $1 billion from Oracle co-founder Larry Ellison and $5 million from Honeycomb Asset Management, which invested in his SpaceX company.
(Published in an arrangement with IANS.)
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