On Monday, Reuters reported that the richest man in the world will buy one of the largest social media platforms for $ 44 billion. Elon Musk announced his plan to acquire Twitter in early April, shortly after becoming the company’s largest shareholder.
Twitter takeover plan plans to raise USD 13 billion from bank loans (including from the Morgan Stanley bank), and subsequent ones $ 12.5 billion is to come from a loan for a set of Tesla shares, and the rest $ 21 billion is to be provided by Elon Musk himself.
In a 95-page contract that regulates the details of the transaction, Elon Musk did not disclose where he intends to obtain the aforementioned $ 21 billion in cash. However, it is easy to guess that at least part of this amount will come from the sale of Tesla Motors shares.
Just in the last two days after the announcement of the Twitter takeover plan, Musk has sold 4.4 million shares of the company worth $ 4 billion. At the same time, the head of the automotive concern reassures investors that – for now – he does not intend to continue this sale.
No further Tesla sales are planned after today
– Elon Musk informed in an entry posted on Friday on Twitter.
Tesla Motors closed its NASDAQ listing on Thursday with a valuation of $ 877 per share. On the other hand, in post-session trading, the stock declined by 2.62 percent.
Elon Musk has already broken the terms of the contract?
The agreement regulating all legal issues related to Musk’s takeover of Twitter, which has already been submitted to the US stock exchange regulator (SEC), provides that each party to the transaction may withdraw from it paying a fine of $ 1 billion. The transaction is expected to close within three to six months.
The problem is that – so far – Elon Musk is quite loose about the terms of the contract. One of her points states that Musk may comment on Twitter about the deal “as long as his tweets do not discredit [Twittera – red.] Meanwhile, this week the head of Tesla has already published several entries that were critical of, among others for action Vijayi Gadde, the head of Twitter’s legal department.
The suspension of a large news organization’s Twitter account for publishing a true story was, of course, unbelievably inappropriate
Musk wrote, which was a reference to one of the decisions made by Gadde. In October 2020, Twitter temporarily blocked the New York Post account. Ultimately, Twitter CEO at the time, Jack Dorsey, apologized for the decision, calling it a mistake.
Musk also responded on Tuesday to a tweet posted by far-right conspiracy sower Mike Cernovich, who suggested that Jim Baker, one of Twitter’s legal team members and former FBI solicitors, had “facilitated the fraud”. “That sounds very bad,” wrote Musk.
Musk’s actions clearly irritated Dick Costolo, former Twitter CEO. “What’s going on here. You’re making the CEO of the company you just bought a target of harassment and threats,” wrote Costolo.
Source: Gazeta
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