Where And How Could Elon Musk Secure The Cash To Buy Twitter?


Elon Musk has offered to buy Twitter outright in a deal valued at $43 billion, according to a filing with the US Securities and Exchange Commission (SEC) on Thursday.

“Twitter has extraordinary potential. I will unlock it,” Musk said in a letter to Twitter chairman Bret Taylor, dated Wednesday, according to the filing. Musk said his $54.20-per-share offer was his “best and final.”

Elon Musk snags Twitter board seat after buying large stake in the US  social network | TechCrunch

Musk described the offer as “non-binding” in the SEC filing and did not explain how he would pay for the deal, which is a large sum of money even for the world’s wealthiest man.

There are good reasons why Elon wants Twitter - Vox

Musk’s fortune is primarily invested in his companies’ shares, with around 17% of Tesla’s publicly traded stock and an estimated 40% of privately owned SpaceX stock. It would be absurd to sell either of them just to fund the Twitter purchase.

According to various sources, musk reportedly made $16.4 billion in cash from the sale of Tesla stock last year. After taxes and the purchase of his existing Twitter assets, Bloomberg estimates that his current cash accounts are worth $2.95 billion.

Musk can also opt for Tesla shares as security for a loan. According to Bloomberg, there is a cap of 25% of the value of the shares, which could place him in the ballpark of $40 billion if he chooses to maximise that option.

Elon Musk's stake buying sends Twitter stock soaring | Daily Sabah

However, everything is dependent on Twitter’s board of directors, who appear to be quite unpredictable at the moment. But one thing is sure: this drama does not appear to be coming to an end anytime soon.


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