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Elon Musk considering $46.5 billion tender offer for Twitter (TWTR)

Musk's potential tender offer to buy Twitter (TWTR) includes $25.5 billion in debt financing and $21 billion in equity financing.

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The story surrounding Elon Musk’s attempt to buy Twitter (TWTR) turned another page today when news broke that the billionaire had secured $46.5 billion to help finance a potential deal.

Musk’s filing details that he’s received commitments for a total of $46.5 billion, including $25.5 billion in debt financing from Morgan Stanley Senior Funding and other firms, as well as $21 billion in equity financing. Other firms that have contributed to the commitment are Bank of America, Barclays, MUFG, Mizuho Bank, BNP Paribas, and Societe Grenerale. According to Yahoo! Finance, TWTR is up more than 1% today, trading at $47.30 per share at the time of publishing. Worth noting, however, is that this share price means Twitter is trading well below Musk's new offer price.

Elon Musk Tender Offer Twitter TWTR Share Price

In early April, Musk purchased a giant stake in Twitter worth $2.89 billion and 9.2% of the company. In the following days, Musk was set to join Twitter’s board of directors, but opted out after. According to CNBC, the offer to join the board of directors came with a condition that Musk could not buy more than 14.9% of Twitter. Whether that was the primary reason Musk decided not to join the Twitter board of directors remains to be seen, but it’s quite possible. If Musk truly intends to purchase Twitter, being held to just 14.9% of shares would block that.

Twitter has also taken steps to prevent a potential hostile takeover from Musk, adopting a “poison pill” shareholder rights plan. This plan would allow Twitter shareholders to purchase additional shares at a discount should any person or group acquire more than 15% of Twitter’s outstanding common stock without the board’s blessing.

Musk’s intention to pursue a tender offer for Twitter may have been leaked by the world’s richest man on the very social media platform he wants to purchase. On April 16, 2022, Musk tweeted out “Love Me Tender”, which is either a giant coincidence or a tease about the tender offer he is now exploring.

You can stay fully updated on this story and more by checking out our Elon Musk topic page, and our Twitter topic page right here on Shacknews.

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Bill, who is also known as Rumpo, is a lifelong gamer and Toronto Maple Leafs fan. He is known for his guide writing and, unsettlingly enough, enjoys grinding out in-depth collectible articles. Tweet him @RumpoPlays if you have a question or comment about one of his guides.

From The Chatty
  • reply
    April 21, 2022 10:50 AM

    Bill Lavoy posted a new article, Elon Musk considering $46.5 billion tender offer for Twitter (TWTR)

    • reply
      April 21, 2022 10:52 AM

      Tendies!

      • reply
        April 21, 2022 10:53 AM

        Mmmm, I haven't had any of those in a while. Might have to fix that this weekend.

    • DM7 legacy 10 years
      reply
      April 21, 2022 11:02 AM

      Rich people live in a different world that we do.

      • DM7 legacy 10 years
        reply
        April 21, 2022 11:03 AM

        *than

        I cannot even speak proper English.

        • reply
          April 21, 2022 11:04 AM

          But they do

          • DM7 legacy 10 years
            reply
            April 21, 2022 1:27 PM

            True, and that’s how they make the money zone.

    • reply
      April 21, 2022 5:07 PM

      Whyyyyyyy?

      Serious questions- all of the Elon bullshit aside, let’s say it’s just some neutral party wanting to buy Twitter for $46.5 billion- 1) How is that a good investment? 2) What are the future hopes with such an acquisition?

      It just seems idiotic.

      • reply
        April 21, 2022 5:24 PM

        He is the richest person in the world and he likes Twitter. He wants it to work exactly the way he thinks it should, and he can afford to buy it and make it work that way. I don’t think there’s a financial motivation here. He just hates anybody telling him what he can or can’t say (see the SEC lawsuits, “free speech” etc). I suspect that since he has all the material things he could possibly want, only intangible things like “people listen to me” and “nobody tells me what to do” matter to him.

      • reply
        April 21, 2022 6:09 PM

        Twitter's real value is as a real-time crowd-sourced search engine. They do a terrible job of monetizing that aspect of the platform, but perhaps some other management could figure out a better path to profit growth.

    • reply
      April 21, 2022 5:28 PM

      It's the troll version of a super villain death laser

    • reply
      April 21, 2022 5:35 PM

      He understands that he is more like Lex Luther than Bruce Wayne, right?

    • reply
      April 21, 2022 5:40 PM

      what is "tender offer"?

      like literally 46.5 billion chicken tendies?

      • reply
        April 21, 2022 5:48 PM

        Probably still worse than McDonalds

      • reply
        April 21, 2022 5:52 PM

        Legal tender, basically a cash offer.

        • DM7 legacy 10 years
          reply
          April 21, 2022 6:03 PM

          Imagine having that much cash.

          • reply
            April 21, 2022 6:03 PM

            He's borrowing a lot of it I read, probably against his Telsa position.

    • reply
      April 21, 2022 6:04 PM

      I feel like he'd do me a favor and finally get me to quit Twitter if he bought it. :/

      • reply
        April 21, 2022 6:54 PM

        I'd think about creating an account just to tell him what a piece of shit he is every day

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