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The world's richest billionaire, Elon Musk, has increased his commitment to finance his Twitter deal to $33.5bn. He has partially scrapped plans to raise bank loans tied to his stake in Tesla in favour of investor funding, Bloomberg reports, citing a disclosure of changes to the Securities and Markets Commission (SEC) buyout plan for the social network.
According to documents filed with the SEC, Musk will provide an additional $6.25 billion in funding, enough to exclude loans of the same amount from the plan. Musk agreed to acquire Twitter at the end of April. He originally planned to borrow $25.5 billion from banks for the purchase and pay another $21 billion out of his own capital. The $12.5bn loans were tied to Musk's stake in electric car maker Tesla, of which he is CEO and founder.
By raising funding from investors, Musk can reduce both the amount of borrowed capital and the amount he has to contribute personally, Bloomberg noted earlier. On May 5, Musk announced that he had secured an additional $6.25 billion in investor commitments. A new document provided to the SEC states that Musk continues to work to secure financing for the deal, including discussing raising capital from Twitter co-founder Jack Dorsey and other investors.
source: bloomberg.com
According to documents filed with the SEC, Musk will provide an additional $6.25 billion in funding, enough to exclude loans of the same amount from the plan. Musk agreed to acquire Twitter at the end of April. He originally planned to borrow $25.5 billion from banks for the purchase and pay another $21 billion out of his own capital. The $12.5bn loans were tied to Musk's stake in electric car maker Tesla, of which he is CEO and founder.
By raising funding from investors, Musk can reduce both the amount of borrowed capital and the amount he has to contribute personally, Bloomberg noted earlier. On May 5, Musk announced that he had secured an additional $6.25 billion in investor commitments. A new document provided to the SEC states that Musk continues to work to secure financing for the deal, including discussing raising capital from Twitter co-founder Jack Dorsey and other investors.
source: bloomberg.com
