Anonymous wrote:WSJ exclusive reporting that Twitter is reconsidering Musk’s offer.
https://www.wsj.com/articles/twitter-re-examines-elon-musks-bid-may-be-more-receptive-to-a-deal-11650822932?mod=mhp

Anonymous wrote:How does the equity piece of Elon's offer work? He'd sell TSLA stock in order to raise the cash? Do an equity swap?

He doesn't have $21B in cash on hand.

Here's what WSJ says: "Mr. Musk is personally committing $21 billion in equity, according to the filing. A person familiar with the matter said he is still considering bringing in an equity partner and has continued to receive inbound interest."

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:^^ Elon Musk unveils $46bn financing package to fund Twitter bid | Financial Times

With a bunch of equity financing. Hardly the all cash offer he tweeted about.

$25B in debt and $21B in equity. That is a massive amount of debt he would saddle onto Twitter, no way that the platform can service that debt. You'd have to be nuts to buy that debt.

"$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) a senior secured revolving facility in an aggregate committed amount of $500 million, (c) a senior secured bridge loan facility in an aggregate principal amount of up to $3 billion and (d) a senior unsecured bridge loan facility in an aggregate principal amount of up to $3 billion . . .$12.5 billion in margin loans [and] the Reporting Person has committed to provide equity financing . . .expected to be approximately $21 billion""

Kind of a crap financing plan.

Also kind of interesting to note that none of the legal heavy-hitters are representing him. McDermott Will out of Chicago. Certainly no slouch, but not the M&A A Team.

Tesla has a policy in place of letting directors and officers only borrow up to 25% of the value of their stock. And Elon Musk has already pledged about 88 million shares against indebtedness, according to Tesla’s 2021 proxy filing. That leaves him with only another 85 million shares to raise debt with.

The 85 million shares are worth, very roughly, $84 billion. At 25% margin debt, that gives him $21 billion of credit. He needs about $40 billion to buy the part of Twitter (TWTR) he doesn’t own.

He looks short, but that math is a little flawed. Musk pledged the stock back in 2019 and 2020, when the shares were worth perhaps $6.5 billion. The maximum loan then would have been roughly $1.6 billion. Tesla stock is worth more now. Shares gained 743% in 2020 and another 50% in 2021.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:^^ Elon Musk unveils $46bn financing package to fund Twitter bid | Financial Times

With a bunch of equity financing. Hardly the all cash offer he tweeted about.

$25B in debt and $21B in equity. That is a massive amount of debt he would saddle onto Twitter, no way that the platform can service that debt. You'd have to be nuts to buy that debt.

Anonymous wrote:

Anonymous wrote:No bank is going to loan Elon the cash he needs to do this. He could start liquidating billions in TSLA shares, but that will spark a massive self off as TSLA shares flood the market. Elon is already leveraged out his butt with existing TSLA shares backing personal loans to fund his lifestyle.

No you are wrong. He has the fund in a trust

Anonymous wrote:It’s an all cash offer. Read.

Anonymous wrote:

Anonymous wrote:^^ Elon Musk unveils $46bn financing package to fund Twitter bid | Financial Times

With a bunch of equity financing. Hardly the all cash offer he tweeted about.

Anonymous wrote:^^ Elon Musk unveils $46bn financing package to fund Twitter bid | Financial Times

Anonymous wrote:

Anonymous wrote:Being free to use the n-word and other degrading racist and sexist slurs is exactly the kind of freedom of speech the right wing wants.

It’s the only kind of free speech they want. They tried to shut down actual free speech every time they’re in office.

Anonymous wrote:Being free to use the n-word and other degrading racist and sexist slurs is exactly the kind of freedom of speech the right wing wants.