FOX Business presenter Stuart Varney discusses the upcoming shareholders’ meeting on Twitter during the opening bell.
Tesla CEO Elon Musk has made adjustments to his funding plan for his proposed $ 44 billion purchase of Twitter.
The revision will cut $ 6.25 billion from the credit package that Musk had previously ordered to buy Twitter, according to a regulatory statement.
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This means that Musk will have to raise this amount as commitments for shares instead of debt. That brings the share of the deal’s equity to $ 33.5 billion, compared to $ 27.25 billion announced three weeks ago.
The move sparked investors’ hopes that Musk still intends to close the deal amid fears about the number of fake Twitter accounts.
Elon Musk, founder of SpaceX and CEO of Tesla Inc. (Lisa Johansen-Kopitz / Bloomberg via Getty Images / Getty Images)
Shares of Twitter jumped 5.5% to $ 39.22 in after-market trading, building up 3.9% during regular trading.
The announcement on Wednesday came the same day as Twitter held its annual shareholders’ meeting.
Shareholders did not turn directly to Musk’s deal – this vote will be scheduled for an as yet uncertain future date if the deal continues.
Twitter CEO Parag Agraval declined to offer an update on the status of Musk’s offer, citing “regulatory and other reasons.”
Parag Agraval, CEO of Twitter (Photo by ROBYN BECK / AFP via Getty Images / Getty Images)
The statement to the Securities and Exchange Commission does not go into much detail about where Musk will receive the additional capital, but stressed that he is still trying to persuade his friend and former Twitter CEO Jack Dorsey to throw his shares in the financial package.
Ticker Security Last Modified Change% TWTR TWITTER INC. 37.16 +1.40 + 3.91%
Dorsey, also a co-founder of Twitter, currently owns a 2.4 percent stake worth about $ 700 million, based on the company’s stock price on Wednesday at closing, according to FactSet Research. Musk owns nearly a 9.6 percent stake worth $ 2.7 billion.
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Wednesday was also Dorsey’s last day as a board member on Twitter, a date set when he resigned as chief executive last November.
The Associated Press contributed to this report.
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