The Strategist

Musk is ready to start negotiations on Twitter purchase

04/22/2022 - 03:40

According to papers on the US Securities and Exchange Commission's website, Elon Musk, the American entrepreneur and founder of SpaceX and Tesla, is willing to pay $46.5 billion for Twitter and wants to begin negotiations right away to obtain a definitive deal.

Daniel Oberhaus
Daniel Oberhaus
Morgan Stanley Senior Funding and numerous other financial institutions have agreed to lend Musk a total of $25.5 billion (with $12.5 billion secured against Tesla equity). Musk is willing to lend another $21 billion on his own.

The document states that "the reporting company seeks to enter into a definitive agreement to purchase Twitter... and indicates its willingness to commence negotiations immediately."

Musk is also considering making a tender offer to buy all of the remaining shares, but hasn't made up his mind yet.

Musk announced on April 4 that he owned 9.2 percent of Twitter and on April 14 that he was willing to acquire the entire company for $54.2 per share. Musk's offer would be considered the next day, according to Twitter. A few hours later, Saudi Prince Alwaleed bin Talal, who owns shares in the company, rejected Musk's offer, saying it was out of line with the company's true value.