31.2 C
Monday, March 20, 2023

Elon Musk Updates Twitter Financing Plan; Shares Jump

Must read

Listen now
- Advertisement -
- Advertisement -

Tesla CEO Elon Musk has made an adjustment to his financing plan for his proposed $44 billion purchase of Twitter.

That means Musk will need to raise that sum in stock commitments instead of debt. That brings the equity portion of the deal to $33.5 billion, up from the $27.25 billion disclosed three weeks ago.

The move raised investor hopes that Musk still intends to make the deal amid his concerns about the number of fake accounts on Twitter.

Twitter shares jumped 5.5% to $39.22 in after-market trading, building on a 3.9% rise during regular trading.

The announcement on Wednesday came on the same day that Twitter held its annual shareholder meeting.

Shareholders didn’t address the Musk deal directly — that vote will be scheduled for an as-yet undetermined future date, should the deal proceed.

Parag Agrawal

Parag Agrawal, CEO of Twitter  (Photo by ROBYN BECK/AFP via Getty Images   / Getty Images)

The filing with the Securities and Exchange Commission didn’t go into much detail on where Musk will get the additional equity, but emphasized that he is still trying to persuade his friend and former Twitter CEO Jack Dorsey to throw his stock into the financing package.

Ticker Security Last Change Change %
TWTR TWITTER INC. 39.52 +2.36 +6.35%

Dorsey, also a Twitter co-founder, owns a 2.4% stake currently worth about $700 million, based on the company’s closing stock price Wednesday, according to FactSet Research. Musk owns a nearly 9.6% stake worth $2.7 billion.

Wednesday was also Dorsey’s last day as a member of Twitter’s board, a date established when he resigned as CEO last November.

- Advertisement -
- Advertisement -

More articles


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisement -

Latest article