Twitter Gains as Musk Discloses $7.1B in Equity Commitments for Merger, Continues Talks with Dorsey for More
2022.05.05 14:47
Twitter (TWTR) Gains as Musk Discloses $7.1B in Equity Commitments for Merger, Continues Talks with Dorsey for More
Twitter (NYSE:TWTR) shares gained 3% in pre-open trading after Elon Musk disclosed equity commitments from dozens of investors including Fidelity Management, Larry Ellison, and Saudi Prince Alwaleed, related to his $54.20 per share or $44 billion takeover bid for the company.
The investors provided an aggregate of approximately $7.139 billion in equity commitments.
In addition, Musk disclosed the margin loan portion of the financing was reduced to $6.25 billion from $12.5 billion. This portion was backed by Tesla (NASDAQ:TSLA) shares.
Further, the Equity Commitment Letter was amended to increase the financing commitments thereunder to $27.25 billion from $21 billion.
Musk is also having continued discussions with Twitter co-founder Jack Dorsey about retaining an equity investment in Twitter following the completion of the merger versus receiving cash in the buyout.
