Below are the financial details for the deal, which was finalized on Thursday according to US media.
At first, Tesla head had hoped to avoid contributing more than $15 billion of his personal money to the $44 billion deal.
A large portion of that, about $12.5 billion, is believed to have come from loans backed by his stake in the electric car company — meaning he won’t have to sell those shares.
Final, Musk abandon the intention to lend and raise more capital in cash. The 51-year-old sold about $15.5 billion worth of Tesla stock in two tranches in April and August.
Ultimately, the South African-born billionaire will net over $27 billion in cash on his own in the transaction.
And importantly, Musk, who Forbes magazine says is worth about $220 billion, owns 9.6% of the Twitter market.
The total amount of the deal also includes $5.2 billion from investment groups and other large funds, including from Larry Ellisonco-founder of software company Oracle, who wrote a check for $1 billion as part of the deal.
Qatar Holding, controlled by Qatar’s sovereign wealth fund, Qatar Investment Authority, has also poured capital into the pot.
And Prince Alwaleed bin Talal of Saudi Arabia transferred to Musk nearly 35 million shares he already owned.
In exchange for their investments, contributors become Twitter shareholders.
The rest of the money – worth about $13 billion – is backed by bank loans, including from Morgan Stanley, Bank of America, Japanese banks Mitsubishi UFJ Financial Group and Mizuho, Barclays and French banks. Societe Generale and BNP Paribas.
According to documents submitted to United States Securities and Exchange CommissionMorgan Stanley’s contribution alone is about $3.5 billion.
These loans are guaranteed by Twitter, and it is the company, not Musk himself, that will be financially responsible for paying them back.
The California company has so far struggled to turn a profit and posted operating losses in the first half of 2022, meaning debt incurred during the acquisition could add financial pressure to the position. already wobbly of social media platforms.
