Elon Musk-Twitter Deal Details: How Elon Musk Managed The Money Needed For The Twitter Deal: Elon Musk’s purchase of Twitter has become a big topic of discussion in the whole world since last week. However, the new owner said that he didn’t own the social media to make money, which seemed a bit surprising. Because. Elon Musk paid 44 billion dollars to include Twitter in his business empire. No one will believe that a person who spends so much does not focus on getting income from it. At the same time, the question of where Elon Musk got so much money is also being raised. This story is the answer.
According to Forbes magazine, Elon Musk’s net worth is around 220 billion dollars. It is not difficult for him to pay only 44 billion dollars for Twitter. But Elon Musk alone did not give that entire amount. He completed the deal with some shareholders. These shareholders include banks and equity investors. Saudi Prince Alwaleed bin Talal and Twitter cofounder Jack Dorsey also have investment funds, according to regulatory filings.
Of the total 44 billion dollars, Elon Musk’s own funds are only 15 billion dollars. A large part of this.. that is.. 12 point 5 billion dollars was provided in the form of loans. These loans were taken by showing shares in his electric car company Tesla as collateral. Moreover, he did not want to sell those shares. In fact, Elon Musk initially thought that he should not invest more personal money in this transaction. But.. could not.
It is known that Elon Musk, who initially decided not to take loans for this deal, sold 15 point 5 billion dollars worth of Tesla shares in the months of April and August. Thus he made a cash payment of over 27 billion dollars in this transaction. Of the $44 billion Elon Musk paid Twitter, 5.2 billion dollars came from investment groups and other large funds.
It is worth noting that Larry Ellison, the co-founder of the software company Oracle, is also in this list. He invested one billion dollars. A check was written to this extent. A company called Qatar Holding also invested some amount. Saudi Prince Alwaleed bin Talal transferred about 35 million shares to Elon Musk. All these investments are rewarded with shares on Twitter. To buy this social media, Elon Musk took about 13 billion dollars from banks in the form of loans.
The list of lending banks includes Morgan Stanley, Bank of America, Japanese banks Mitsubishi, Mizuho, Barclays, French banks Societe Generale and BNB Paribas. According to documents filed with the US Securities and Exchange Commission, Morgan Stanley alone has sanctioned around 3.5 billion dollars. The Twitter company has given a guarantee that it will be responsible for repaying these bank loans. It is important to note that Elon Musk did not make any personal guarantees.
Financially, Twitter has not fared well so far. It takes a lot of effort to get a profit. Pushed by operating losses in the first 6 months of fiscal 2022. Needless to say, Twitter is going to face more financial pressure in this situation as it guarantees more loans. Elon Musk has also taken drastic measures to save this company from the mire of losses. Almost half of the employees have already been laid off. It remains to be seen how many more reforms will be undertaken.
