Elon Musk raised to $ 33.5 billion the total brought directly by the businessman and his partners for the acquisition on Twitter, further reducing the amount borrowed from banks, an announcement welcomed by investors (AFP / Chris DELMAS)
Elon Musk raised to $ 33.5 billion the amount directly contributed by the businessman and his partners for the acquisition of Twitter, further lowering the amount borrowed from banks, an announcement that investors welcomed.
After the announcement, the bluebird group’s action rose in trading after the closure of Wall Street. At 11:00 pm GMT, the title had reached more than 5%.
Tesla’s chief executive, who first subscribed for 25.5 billion loans, reduced these loans to $ 13 billion, according to a document registered Wednesday by the American authority of the markets (SEC), which is highly which eases his cargo.
In early May, several current Twitter shareholders agreed to contribute their shares to the operation and thus remain a minority within the capital when the company is delisted.
The appreciation of their titles reduced the envelope that Elon Musk had to put on the table.
On Wednesday, the founder of SpaceX announced that he had received new direct commitments, allowing him to reduce the amount of loans taken out for the acquisition of an additional 6.25 billion.
He did not specify whether this amount came, in whole or in part, from his personal assets, or whether other investors joined him.
– “Poker” kick –
But he said he was talking to several people, including co-founder and former chief executive Jack Dorsey, with the goal of getting them on board and getting their contribution, either in cash or in Twitter shares, who could still also reduce the amount borrowed. .
“Elon Musk is just changing the financing structure. It’s a step forward, it slightly reduces the pressure on the debt side,” commented expert Dan Ives, from Wedbush, on Twitter.
“The poker game continues with high stakes. The probability of the deal going through is now 50/50, down from 40/60, in our view,” he added.
The $ 12.5 billion in loans that were ultimately unnecessary has worried some analysts because they are loans backed by Tesla securities. So they made a link with the car manufacturer, who was dissatisfied with the market.
Since the disclosure of Elon Musk’s stake in the Twitter capital in early April, the group has lived to the rhythm of the many twists and turns of the case.
Tuesday the action fell to 35.40 dollars, or 35% lower than the price officially proposed by the fiery trader in mid-April and validated, shortly afterwards, by the board of directors (CA).
A change that Wall Street interprets as a description of investors ’doubts about the chances of this acquisition succeeding.
– One fewer allies –
These doubts were fueled by the multi-billionaire himself, who got hot and cold last week.
In particular, he announced that he suspended the operation because he wanted to make sure that “spam and fake accounts actually represent less than 5% of the number of users.” Before repeating its promise to get the social network.
Twitter boss Parag Agrawal walked out to detail the steps taken to combat fake accounts and Elon Musk responded with several messages, including a simple laughing emoji.
On Wednesday, during the group’s general meeting, shareholders voted against the re-election in CA of Egon Durban, co-director general of investment fund Silver Lake and an ally of Tesla’s boss.
The issue of the buyout was not raised at the AGM. The shareholders ’vote on Elon Musk’s offer must be the subject of an extraordinary general meeting, on a date unknown at the moment.
Tensions between Twitter’s management and the world’s richest man have escalated since the beginning of April.
The CA first tried to prevent the transaction before bowing.
Elon Musk, who has more than 95 million subscribers to his profile, said he wanted to make the platform a bastion of freedom of expression, following the American rights perspective, which it considers self-censored by social network.