Tesla and Space X CEO Elon Musk has $46.5 billion to back his bid to buy social media platform Twitter after bidding about $43 to take hold of the company last week, according to a report in The Wall Street Journal on Thursday (April 21).
Musk said in a regulatory filing that he’s considering taking his takeover offer directly to Twitter shareholders rather than to board members, who appear to be opposed to the proposed hostile takeover, the report said, adding Twitter is reviewing Musk’s newest proposal.
The $46.5 billion total comes with about $25 billion in bank debt from Morgan Stanley, Bank of America and Barclays and half in cash from Musk, the richest man in the world. Musk has been talking to potential equity partners about joining his group, the report said.
Twitter has been trading well below the $54.20-per-share offer Musk made for the social media company, but board members still expect to reject Musk’s overture in the next few days, according to the report.
Musk first tried to buy Twitter in 2018, but he didn’t have the financing in place to close the deal. He said Thursday he is considering a tender offer that sidesteps the board of directors and puts the decision in the hands of shareholders.
Last week, Twitter’s board adopted a poison pill mechanism that prevents Musk from buying more than 15% of the company by offering other investors cheap shares that dilute his share.
Musk, who has more than 82 million Twitter followers, is the largest individual investor in the company with more than 9%.
Earlier this week, WSJ reported buyout firm Apollo Global Management, which owns Yahoo, is thinking about taking part in a bid for Twitter, noting it has held discussions about backing a potential deal for Twitter.
Twitter is set to report earnings April 28.