Elon Musk has a moment to catch his breath after a judge granted his request to stop a Twitter lawsuit against his proposed $44 billion acquisition of the social media company by October 18 on Thursday, but not much longer. The next important question after the deal will be: How will Elon Musk pay for Twitter?
Elon Musk has promised to contribute $46.5 billion in debt and equity finance for the purchase of Twitter. The $44 billion price tag and closing expenses will be covered by this. 13 billion dollars of the debt funding will probably be provided by Morgan Stanley and Bank of America Corp.
Musk’s $33.5 billion equity pledge, which includes his 9.6% Twitter ownership and the $7.1 billion from equity investors, will provide the remaining funds. This will leave a $22.4 billion gap.
Elon Musk has the option of increasing the stake he holds in either SpaceX or Tesla. He may potentially recruit more investors or receive a loan from a bank secured by the stocks.
Larry Ellison, the founder of Oracle, expressed interest in the deal as an investor in Twitter in April. He would join the group of investors who have committed to providing &7.1 billion of the financing.
