Elon Musk secures R111 billion in new funding to buy Twitter

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Elon Musk has secured about $7.1 billion (R111 billion) of new financing commitments for his proposed $44 billion (R689 billion) takeover of Twitter Inc., the company said in a filing Thursday.

The commitments come as the Tesla Inc. billionaire marshals capital to bankroll one of the largest tech industry acquisitions to date. The investors named in the filing include Binance, Brookfield, Fidelity Management Research, Lawrence J Ellison Revocable Trust and Qatar Holding. Twitter shares rose 2.3% in pre-market trading. Musk is now in discussions with Twitter co-founder Jack Dorsey on contributing some of his shares toward the acquisition.

 

The company also said that a previously announced margin loan committed toward the deal was reduced to an aggregate principal amount of $6.25 billion (R98 billion) from $12.5 billion (R196 billion). The world’s wealthiest man reached an agreement on 25 April to acquire Twitter using a financing plan that’s alarmed some Tesla investors. In addition to pledging tens of billions of dollars worth of his Tesla shares to support margin loans, Musk has vowed to line up some $21 billion (R329 billion) worth of equity.

 

It’s been unclear how much of that would come from selling a portion of his Tesla stake. Musk has sold more than $8.5 billion (R133 billion) of Tesla stock to finance the deal.

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