Photo: Jakub Porzycki / NurPhoto (Getty Images)
Tesla CEO Elon Musk has the support of several major banks to put together enough scratches to play for Twitter.
Documents from the Securities and Exchange Commission of April 20 show that Musk is “examining whether to launch a tender for the acquisition of all outstanding shares of ordinary shares” with his initial bid of $ 54.20 per share, totaling approximately 45 , $ 5 billion. The documents state that the Twitter board has not yet responded to the proposal.
Earlier, the question was whether Musk would have the capital to match his proposed value to the company, although documents show he is borrowing from major players, including Morgan Stanley Senior Funding, which has offered $ 25.5 billion for debt financing. Musk himself will commit $ 21 billion in self-financing, which will come from shares held by the CEO of Tesla. CNBC also reported that Bank of America, Barclays, MUFG, Societe Generale, Mizuho Bank and BNP Paribas are helping to finance the buyout.
The fact that he is “researching” whether to make a bid means that he has yet to make it available on Twitter, which has already taken a poison pill in the form of a “Rights Plan” that allows shareholders to buy additional shares in a discounted company if someone buys more than 15% of the company at once.
The rights plan basically means that Musk has no choice but to discuss his proposal with the board. Telsa’s chief executive was also worried about the idea that his deal would fail, saying in a question to TED last week: “I’m not sure I can actually get it.”
Musk has repeatedly used the word “gentle” in tweets to hint at the move, writing “___ is night” earlier this week. This is quite common for him as a regular Twitter and troll user, especially considering that he likes to leave the Easter egg “420” in documents such as $ 54.20, which he offers for each share. He got involved – a full SEC investigation, millions in fines and resignation as Tesla’s chairman – for writing on Twitter “secured funding” for the offer to take Tesla privately in 2018, when he did not actually secure funding. The stock price was – what else? – $ 420.
Musk says he wants to take Twitter out of control and open the platform to all users to express themselves, even some who have previously been banned from effectively promoting violence. Many Republicans have complained that disinformation is regulated by Twitter, and they strongly support Musk’s takeover.
Musk has a strange understanding of what it means for a social media company to be open to free speech. On April 19, Musk tweeted that “social media platform policies are good if the top 10% on the left and right are equally dissatisfied.” As a self-proclaimed “absolutist of freedom of speech,” this seems a somewhat self-destructive idea. He also ignores that, by their very nature, the most extreme parts of the two political spectrums will always be unhappy.
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