October 28-Elon Musk concluded the $44 billion acquisition of Twitter Inc. (TWTR.N) on Thursday, opened a new tab for private use, and assumed control of the significant social media network by sacking senior officials right once. The deal was first disclosed in April.
He tweeted, “The bird is freed,” perhaps expressing his want for the corporation to impose less restrictions on the type of information that may be shared. However, Musk did not elaborate on how he plans to accomplish his objectives. read on for more Musk attempted to back out of the agreement earlier this month, but he later brought it back to the table. Musk has expressed his excitement in acquiring Twitter, but he and his partners are paying too much.

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Describe his financing strategy.

Musk promised to finance the acquisition with $46.5 billion in debt and equity, which paid for the $44 billion purchase price plus closing charges. Financial institutions, such as Morgan Stanley (MS.N) and Bank of America Corp (BAC.N), have pledged to contribute $13 billion in debt financing.

According to experts, banks’ pledges to the transaction were strict and unwavering, which limited their ability to back out of the agreement even if they would suffer significant losses.

Musk pledged $33.5 billion in equity, which consisted of his $4 billion 9.6% investment in Twitter and the $7.1 billion he had raised from equity investors, including Larry Ellison, co-founder of Oracle Corp (ORCL.N), opens new tab, and Saudi Prince Alwaleed bin Talal.

Musk thus need an extra $22.4 billion in funding to pay for the deal’s equity financing.

Sixth Street Partners withdrew their proposals from the table and Apollo Global Management Inc. (APO.N) opened a fresh tab following the revelation of the co-backers.


According to Forbes, Musk, 51, has a net worth of $222 billion, making him the richest person in the world. However, a significant amount of his wealth is derived from his investments in Space X and Tesla.

Musk reportedly had over $20 billion in cash after selling a portion of his Tesla stock in a series of transactions that occurred in November and December of last year as well as in April and August, according to a Reuters computation.

To finish funding the project, Musk would have needed to secure a further $2 billion to $3 billion.


It was not immediately apparent how Musk filled a roughly $3 billion funding shortfall. Since no Form 4s were submitted this week, Wedbush analyst Daniel Ives speculated that it may be outside financing, and that an investor may already be supporting the deal.

In the nine days between the electric automaker’s findings on October 19 and the deadline of October 28 to finalize the acquisition, Musk was almost universally predicted to sell more of his Tesla shares. We have not yet received notification of a sale.