Informed sources told “Reuters” that Elon Musk is in talks with large investment firms and high-ranking wealthy individuals, regarding injecting more funds into its $ 44 billion acquisition of Twitter and linking less of its wealth to the deal.
Musk is the richest person in the world, with Forbes estimated his net worth at $ 245 billion. But most of his luck is tied to the shares of Tesla, the maker of auto of which it heads. Last week, he announced he had sold $ 8.5 billion worth of Tesla stock in the wake of his Twitter buyout deal.
Sources said the new funding, which could come in the form of preferred or common stock, could reduce a contribution in $ 21 billion cash that Musk had pledged to pay in the deal, as well as a marginal loan he secured against his Tesla stock.
Musk also pledged to give some Tesla stock to banks to arrange a $ 12.5 billion margin loan to support financing the deal. One of the sources said he could try to reduce the size of the marginal loan based on the interest of new investors to finance the transaction.
The sources also said that large investors such as private sector companies, hedge funds, and individuals with net worth, are in talks with Musk to provide preferred equity financing for the acquisition.
They added that Apollo Global Management and Aris Management Corp. are among the private sector companies involved in the funding talks.
They said Musk has not yet decided which partners will provide him with the necessary funds to complete the deal. He is currently not looking to use more debt tools for the Twitter deal.
If Musk withdraws from the Twitter acquisition deal, he will have to pay a $ 1 billion fine to the company that owns the popular site. social networkand the company has the right to sue in judgment for not having completed the agreement.
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