Elon musk buy Twitter: Microblogging platform Twitter has been bought by the world’s richest man Elon Musk for $44 billion. The deal will be completed by the end of this year. However, after the deal was agreed, now the biggest secret is on the $ 21 billion ‘cash’, which Elon Musk has personally taken responsibility for. How is Elon Musk going to cover the $21 billion equity portion of the transaction? The question of how and from where Musk will arrange such a huge amount remains a mystery.
However, Musk has publicly disclosed only last week how he will repay this amount. Musk told in a security filing that he would seek help from investment bank Morgan Stanley and other lenders’ groups. Musk also mentioned that he has a loan offer of $ 13 billion from the investment bank and the remaining $12.5 billion he will exchange shares in his electric car company Tesla.
Musk’s net worth is $257 billion
How Elon Musk will repay the $21 billion is the big question. According to Bloomberg estimates, he has about $3 billion in cash and some degree of liquidity assets. However, there is no doubt that he will arrange the cash as he is the richest person in the world. According to the Bloomberg Billionaires Index, Musk has a net worth of $257 billion.
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Musk has these 3 options
1. To take loans from investors: Elon Musk can take help of some investors. After his initial offer to buy Twitter, Musk said at a TED event that he “intends to retain as many shareholders as permitted by law.” Private US companies are typically limited to fewer than 2,000 shareholders, which means that most retail investors will no longer own Twitter if the buyout goes off. But large shareholders, such as Twitter founder Jack Dorsey, may choose to keep their stake in the company. Dorsey’s stake is worth about $1 billion. According to Bloomberg News, Musk is looking to line up equity partners and is in talks with other potential co-investors. However, Musk’s statement at the TED event that he “doesn’t care about the economics” may scare off some potential investors.
2. Will sell stake in his company: Another option for Musk is to sell a stake in his company. Musk can raise funds by selling some stake in Tesla and SpaceX. Musk can pledge shares to cover $12.5 billion in debt. Musk still owns roughly $21.6 billion in shares in the car company, based on Tesla’s closing price. However, it will depend on the price you get on the stock. Tesla shares are down about 8% so far this month. Apart from this, Musk can sell his stake in his private companies – SpaceX and The Boring Company. However, this is also less likely, as these too have less liquidity.
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3. Cash, Crypto: Another third option that Elon Musk has is cryptocurrencies. According to the Bloomberg Billionaires Index, Musk has considerable crypto assets. Musk said in July that he owned bitcoin, ether and Dogecoin. However, it is not clear how much crypto assets they hold or for how long. The first two cryptocurrencies have gained about 720% and 2,600%, respectively, since March 2020. Meanwhile, Dogecoin surged nearly 30% on Monday after Musk agreed to buy Twitter. There is a record boom in bitcoin.