Elon Musk has informed investors who have pledged to support funding his $44 billion (approximately lakh crore) Twitter acquisition that he plans to close the acquisition. social media company on Friday, according to a person familiar with the matter.
Equity investors, including Sequoia Capital, Binance, Qatar Investment Authority, and others have received the necessary paperwork for the funding pledge from Muskthe source added.
The move is the clearest sign yet that Musk plans to comply with the Delaware court judge’s deadline for completing the transaction on Friday.
Banks have committed to fund Musk’s acquisition Twitter has completed its final debt financing agreement and is in the process of signing the necessary documents, as reported by Bloomberg News.
According to the report, Musk committed to closing the deal during a video conference on Monday with bankers who were helping fund the deal.
Twitter declined to comment. Musk’s lawyers were not immediately available for comment.
Twitter shares jumped on the news and are trading up 3% at $52.95 (about Rs 4,500) on Tuesday, close to Musk’s suggested price of $54.20.
Musk has pledged to provide $46.5 billion (approximately 3.8 lakh crore) of equity and debt financing for the acquisition, including a $44 billion (approximately 3.6 lakh crore) price tag, and closing costs.
Banks, including Morgan Stanley and Bank of America, have pledged to provide $13 billion in debt financing to support the deal.
Equity investors, including Oracle Corp co-founder Larry Ellison and Saudi Crown Prince Alwaleed bin Talal, will invest with $7.1 billion (about Rs 59,000).
Closing the deal would quell months of speculation that the capricious businessman would abandon the takeover.
Musk describes himself as a free speech advocate and has criticized Twitter’s approach to monitoring violent or hateful content, which has led to bans on many prominent conservative voices.
© Thomson Reuters 2022
