Reply to Elon Musk buys $3 billion stake (9.2%) in Twitter and is now the platform's largest shareholder

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Poison pill is still in place, right?[/quote]

That's only for a hostile bid.  Right now, there isn't a hostile bid out there.  Twitter is actively negotiating with Musk.  Probably stuck on form of consideration and [b]break up fee[/b].[/quote]

So if Musk can't close the deal, he will need to pay Twitter a breakage fee?

The problem I see now is that Musk may get caught in a price spiral, if he can't secure enough investors to sell at $54. [/quote]

Will Musk have to sell his stake in Tesla to make this happen?[/quote]

He's mostly loading up Twitter with debt and issuing new equity to fund this. He will be using his TLSA shares and pledging them to banks as collateral for about $12.5 in loans.

"$13 billion in financing to the Reporting Person and related entities as follows: 
(a) a senior secured term loan facility in an aggregate principal amount of $6.5 billion, - [b]Loan from a bank or other investor that will be secured against Twitter's assets[/b]
(b) a senior secured revolving facility in an aggregate committed amount of $500 million, - [b]Loan from a bank or other investor that will be secured against Twitter's assets[/b]
(c) a senior secured bridge loan facility in an aggregate principal amount of up to $3 billion and - [b]Loan from a bank or other investor that will be secured against Twitter's assets[/b]
(d) a senior unsecured bridge loan facility in an aggregate principal amount of up to $3 billion" - [b]Loan from a bank or other investor that is unsecured, but owed by Twitter[/b]

". . .$12.5 billion in margin loans..." - [b]Elon pledging his TSLA shares or other assets to a bank/investor in exchange for cash to fund the purchase[/b]

"...[and] the Reporting Person has committed to provide equity financing...expected to be approximately $21 billion"  [b]Cash from Elon and/or new shares issued by Elon to raise capital to finish the purchase[/b]

Good reading on this topic:
https://techcrunch.com/2022/04/21/we-just-found-out-how-elon-musk-may-finance-his-43b-twitter-bid/
https://www.barrons.com/articles/tesla-ceo-elon-musk-twitter-financing-51650118671

This is probably Elon's riskiest business move to date. If TSLA stocks downturns, he will be facing massive margin calls for tens of billions in personal loans. [/quote]

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