Elon Musk Reportedly Tells Bankers He’ll Buy Twitter By Friday Deadline

Topline

Elon Musk told the banks that are partially funding his $44 billion Twitter acquisition he plans to close the deal by Friday, a deadline set by Delaware state court judge, Bloomberg reported Tuesday, as the world’s wealthiest man finally seems set on purchasing the social network after a very public case of buyer’s remorse.

Key Facts

Key Background

In total, Musk secured $12.5 billion in loans from the banks, with the rest of the funds coming from his own horde of cash, which has swelled as he sells tens of billions of dollars in Tesla stock, and a slew of equity investors, including billionaires Marc Andreesen and Larry Ellison and Qatar’s sovereign wealth fund. In April, Twitter accepted Musk’s unsolicited offer to take the company private at $54.20 per share before the parties became entangled in a six-month legal tug-of-war, with Musk trying to pull out of the deal as Twitter sued him to close the acquisition.

Surprising Fact

The banks plan to keep the $13 billion in debt for the time being after facing a likely $500 million loss on any sale, according to Wall Street Journal and Reuters, a rare step for debt financiers. That would make this the largest stalled deal ever, according to Business Insider.

Crucial Quote

“They’re big boys, they can deal with it,” JPMorgan Chase Dimon told CNBC earlier this month when asked about his rivals potentially taking a massive loss with Twitter.

Further Reading

Factbox: Who is financing Elon Musk’s $44 billion deal to buy Twitter? (Reuters)