Elon Musk is ready to pay $15B out of pocket to buy Twitter
Elon Musk recently offered to buy Twitter for $43 billion, and it has been revealed that he is willing to stake a large portion of that amount himself. While a regular route for acquisitions of this size includes partnerships with investment firms, it has been reported that Musk would be willing to pay a large amount himself, while also putting up his current Twitter stake as collateral for a loan.
According to the New York Post, two sources familiar with the matter said that Musk would be willing to put up $10 to $15 billion of his own money in the proposal, as well as leveraging his 9.1 percent stake in the company to pick up a favourable loan.
Reportedly, he is talking to investment bank Morgan Stanley to finance another $10 billion of the deal to purchase the social media platform.
A few days ago, Twitter co-founder and former CEO Jack Dorsey implicitly supported Musk's bid by saying that the company's board has been a source of "dysfunction" since the early days. This revelation came after Musk announced that he would reduce board salaries to $0 if he were to purchase the company, saving Twitter around $3 million instantly.
Twitter's share price closed yesterday at $47.69, lower than the $54.20 that Musk has offered to buy. Musk plans to launch a tender offer to all shareholders in ten days' time.