Elon Musk looks to scrap Tesla loan with Twitter funding: report

0
10

Elon Musk is in talks to raise enough equity and preferred financing for his proposed buyout of Twitter to negate the need for a $6.25 billion margin loan linked to his Tesla shares, Bloomberg Law reported on Thursday.

The billionaire’s advisers, led by Morgan Stanley, have begun soliciting interest from potential investors for as much as $6 billion in preferred equity financing, the report said, citing people with knowledge of the matter.

Twitter declined to comment on the report, while Musk could not be reached for comment.

Musk originally took out a $12.5 billion margin loan secured against his Tesla stock to help fund his purchase of Twitter. But he reduced that loan to $6.25 billion earlier this month after bringing in co-investors.

The Securities and Exchange Commission is investigating Musk’s delayed disclosure of his sizable stake in Twitter last month, the Wall Street Journal reported on Wednesday,

Musk, the world’s richest man, is aiming to increase Twitter’s annual revenue to $26.4 billion by 2028, up from $5 billion last year, the New York Times reported last week.

Credit: Source link