Despite being dubbed the richest man in the world with a fortune of USD 270 billion, Elon Musk was actually unable to acquire Twitter for USD 43 billion and did not have sufficient cash.
The majority of the Tesla and SpaceX boss's wealth is in the form of shares. While Musk's cash is predicted to 'only' reach USD 3 billion. In fact, the acquisition of Twitter worth USD 43 billion had to be paid in cash.
As a result, Musk racked his brains in finding funding to buy Twitter and successfully got a funding commitment of USD 46.5 billion. The data is known from the data registration with the Securities and Exchange Commission.
The USD 46.5 billion consists of debt of USD 25.5 billion from Morgan Stanley, equity funding commitments of USD 21 billion, which may also contain personal money of USD 10 billion to USD 15 billion.
The funding commitments came from a number of companies, including Bank of America, Barclays, MUFG, Societe Generale, Mizuho Bank, and BNP Paribas, as quoted by us from Phone Arena, Friday (22/4/2022).
If Musk decides to make an official offer to Twitter, he is required to release a public announcement stating that he will buy a certain number of shares (Twitter) at a certain price.
So far, Twitter's board of directors has no interest in selling Twitter stock to Musk, even at $54.20 per share. They even threatened to activate the "poison pill" if Musk forced to acquire Twitter (hostile takeover).
In the Twitter case, the board of directors said that when someone bought 15% of Twitter's shares without the permission of the board of directors, all Twitter shareholders were allowed to buy more Twitter shares at a large discount.
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