Elon Musk Secures $46.5 Billion to Buy Twitter: SEC Filing

Elon Musk says he has secured $46.5 billion to buy Twitter, according to a new filing with the Securities and Exchange Commission.

Musk, the world’s richest man, has been trying to execute a hostile takeover of Twitter for the last few weeks. First, he became the company’s largest shareholder, then, he made a bid to purchase the company outright and take it private. Twitter, for its part, has taken steps to prevent Musk from buying it.

One of the big question marks after Musk made his original announcement was whether or not he had the money to buy the company. Musk is worth upwards of $250 billion, but much of that is tied up in SpaceX and Tesla stock. Musk says in his new filing that he’s secured funding and is “seeking to negotiate a definitive agreement for the acquisition of Twitter … and is prepared to begin such negotiations immediately.”

The filing says that Musk has received “commitment letters committing to provide an aggregate of approximately $46.5 billion” from Morgan Stanley “and certain other financial institutions” in the form of loans and equity financing. Musk submitted three commitment letters alongside the filing.

This doesn’t necessarily mean that Musk will buy Twitter; Twitter recently adopted a “poison pill,” a move in which new, cheaper shares are available for sale to existing shareholders if a person or entity (in this case, Musk) tries to buy huge amounts of Twitter’s outstanding stock. 

What happens next is still up-in-the-air, but the move suggests Musk is serious about buying the company, or at least serious about making it look like he’s serious about buying it. For more about how this could go, read our interview with an old-school corporate raider about the potential deal.

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