Elon Musk Reportedly Seeking Debt Funding for Twitter Bid
Elon Musk appeared to be seeking funding for his $43 billion bid to take over the social network Twitterhe appeared on Wednesday afternoon.
According to New York Times, Morgan Stanley had canvassed banks and other potential investors to secure funding for Musk’s deal.
It was previously reported that Morgan Stanley was working with Musk on the Twitter deal.
the NYT says the billionaire You’re here chef was currently considering debt financing rather than equity financing.
Elon Musk made the unsolicited offer for Twitter last week, saying he wanted to make the company private and ensure people could tweet more freely.
At the time, he gave no details on how he would finance the offer.
Twitter’s board didn’t formally reject Musk’s offer, but announced a “poison pill” in response, which would essentially stop the 50-year-old from buying more than 15% of the company. ‘business.
Musk’s tweets have long been the subject of controversy, as well as regulatory action, with the US Securities and Exchange Commission (SEC) currently requiring all of his tweets to be pre-cleared.
It was part of his settlement with the regulator after he tweeted in August 2018 that he had “obtained” funding to take Tesla private at $420 per share.
Musk’s 2018 tweet was not followed by any formal proposal to take the company private, and he was charged with securities fraud for the job.