Elon Musk will provide an additional $ 6.25 billion in equity to fund the Twitter deal

Elon Musk will provide an additional $ 6.25 billion in equity to fund the Twitter deal

In April, Musk lined up $ 46.5 billion in debt and equity financing to buy Twitter.

California:

Elon Musk on Wednesday pledged an additional $ 6.25 billion in equity financing to fund a $ 44-billion offer for Twitter Inc., reducing the billionaire’s margin loan to zero against its Tesla Inc. shares.

The revelation in a regulatory filing on Wednesday indicated that Musk was working to complete the deal, although he linked its progress to Twitter last week, which provided evidence that spam bots accounted for less than 5% of total users.

While spam bots are suspected to be responsible for at least 20% of users, the world’s richest man and Tesla’s top boss suggested he could ask for lower prices for social media companies.

Musk said Wednesday that he was in talks with shareholders, including Jack Dorsey, to pledge additional funding for the deal.

Twitter shares jumped nearly 6% to $ 39.15 in extended trading. Kasturi could not immediately be reached for comment.

He initially took out a $ 12.5-billion margin loan, but reduced it to $ 6.25 billion after bringing in co-investors earlier this month.

In April, Musk lined up $ 46.5 billion in debt and equity financing to buy Twitter, while Musk himself made 33.5 billion.

Following Musk’s proposal, Twitter’s board initially voted to accept a poison pill that limits its ability to increase its share, but later voted unanimously to accept its purchase offer.

Twitter said last week that it was committed to the deal at an agreed price of $ 54.20. Separately, at an annual shareholder meeting on Wednesday, Twitter investors blocked the re-election of Musk’s ally on its board.

(Except for the title, this story was not edited by NDTV staff and was published from a syndicated feed.)

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