Musk to explore potential tender offer for Twitter, has $46.5B in committed financing for deal

Musk to explore potential tender offer for Twitter, has .5B in committed financing for deal


Tesla and SpaceX CEO Elon Musk at Tesla’s “Gigafactory” on March 22, 2022 in Gruenheide, southeast of Berlin.

Patrick Pleul | AFP | Getty Images

Elon Musk is exploring whether to commence a tender offer for Twitter, according to a new securities filing.

In an updated filing published Thursday, Musk said that given the lack of response from Twitter’s board, he is now exploring a tender offer to purchase some or all shares of the company directly from its stockholders.

The filing says Musk has received commitments for $46.5 billion to help finance the potential deal. Musk has secured about $25.5 billion in debt financing through Morgan Stanley Senior Funding and other firms, and he said he has committed about $21 billion in equity financing. The other participating firms are Bank of America, Barclays, MUFG, Societe Generale, Mizuho Bank and BNP Paribas.

Musk has not yet determined if he will make a tender offer for Twitter or whether he will take other steps to further the proposal, the filing states.

A Twitter spokesperson confirmed the company received Musk’s proposal.

“As previously announced and communicated to Mr. Musk directly, the Board is committed to conducting a careful, comprehensive and deliberate review to determine the course of action that it believes is in the best interest of the Company and all Twitter stockholders,” the spokesperson said in a statement.

Last week, Musk offered to buy Twitter for $54.20 a share, or about $43 billion. On Friday, Twitter adopted a limited duration shareholder rights plan, often referred to as a “poison pill,” in an effort to fend off a potential hostile takeover.

Musk, who’s CEO of Tesla and SpaceX, in recent weeks has amassed a more than 9% stake in the company. Twitter then extended an offer to Musk to join the board, but on the condition that he couldn’t buy more than 14.9% of the firm. Musk reversed course and instead made a bid to take Twitter private.

CNBC’s David Faber explained Thursday on “Squawk on the Street” that Musk will be unable to finalize a tender offer for Twitter with the poison pill defense in place.

“You have to have a negotiation with the board,” Faber said. “That is yet to happen.”

Musk first teased a tender offer on Monday, when he posted a cryptic tweet that said “Love Me Tender.”

WATCH: Twitter is ready for a shake-up, says former director Ryan Sarver

Correction: Musk has secured about $25.5 billion in debt financing through Morgan Stanley Senior Funding and other firms. An earlier version misstated the figure.

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Rachel Meadows

Rachel Meadows

Trending topics news writer who enjoys cooking, walking her dog and travel.

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