The "Musk Acquisition of Twitter Incident" that recently swept the financial technology page added new trends after Musk released two mysterious and obscure tweets this week, "Love Me Tender" and "is the Night".
On Thursday, April 21, EST, according to a new U.S. securities filing, Tesla CEO Musk is studying whether to start making a takeover offer for U.S. social platform Twitter to acquire Twitter stock at $54.20 per share (or about $43 billion), and the proposal will depend on completing financing and due diligence, rather than the original financing.
Musk has received about $46.5 billion in financing commitment letters from Morgan Stanley, Bank of America and Barclays, along with Societe Generale, Mizuho and BNP Paribas, the documents said. But Musk has yet to determine whether he will make a takeover offer to Twitter or whether he will take other steps to move the proposal forward.
Half of this is Musk himself out of pocket $21 billion in cash, which was previously interpreted by the media as a personal entertainment "show"; the other half is about $25.5 billion in debt financing raised by the above-mentioned banks. In debt financing, fixed-term debt is approximately $6.5 billion, rollover debt is approximately $500 million, secured bridge debt and unsecured bridge debt are both $3 billion, and leveraged loans are approximately $12.5 billion.
Musk currently has about $3 billion in cash or other somewhat liquid assets after spending $2.6 billion on a 9.1 percent stake in Twitter in recent months, according to Bloomberg calculations. It's unclear whether Musk will sell tesla-owned shares to buy Twitter, but according to sources, Musk is still considering bringing in potential equity partners and has spoken to some interested investors.
Twitter responded on the same day that it had received Musk's "latest, non-binding proposal" that "provides additional information about the original proposal and new information about potential financing" and that Twitter will conduct a careful and comprehensive review to determine what it believes is in the best interests of the company and all Twitter shareholders. But people familiar with the matter say Twitter is still likely to reject its bid in the coming days.
Meanwhile, Musk said he is considering launching a bid offer because he has yet to receive feedback from Twitter's board on his bid. According to documents filed Thursday, he is seeking negotiations on a definitive deal to buy Twitter and is prepared to begin such talks immediately. Previously, Musk had said his first offer was his "best and final offer."
Twitter shares were pulled higher in early trading thursday after falling more than 2 percent at one point, closing up 0.73 percent at $47.08, below musk's proposed price of $54.20.