Elon Musk has informed investors who agreed to help finance his takeover of Twitter that he wants to close the buyout of the social media giant on Friday. The banks that agreed to finance Musk's takeover have completed the final debt financing arrangement and are in the process of signing the relevant documentation.
According to a source familiar with the situation, Elon Musk has informed the investors who agreed to help finance his $44 billion acquisition of Twitter Inc (TWTR.N) that he wants to close the buyout of the social media giant on Friday.
In addition, the source said that Musk's attorneys have sent the necessary papers for the finance pledge to equity investors like Sequoia Capital, Binance, and the Qatar Investment Authority.
This is the strongest indication yet that Musk will meet the Friday deadline set by a judge in Delaware court to close the deal.
According to a Bloomberg News story, the banks that agreed to finance Musk's takeover of Twitter have completed the final debt financing arrangement and are in the process of signing the relevant documentation. According to the article, Musk made the commitment to conclude the purchase during a video conference call with the bankers who are funding the acquisition on Monday. Twitter did not want to talk about it. Musk's legal team did not respond to requests for comment.
On Tuesday, Twitter stock rose by 3 percent, closing at $52.95, which is closer to Musk's offer price of $54.20. After factoring in the purchase price of $44 billion and closing costs, Musk has committed to providing a total of $46.5 billion in stock and debt funding for the transaction. There will be $13 billion in debt financing to back the acquisition, and many banks, notably Morgan Stanley and Bank of America Corp (BAC.N), have already agreed to providing it.
Oracle Corp (ORCL.N) co-founder Larry Ellison and Saudi Prince Alwaleed bin Talal are among the $7.1 billion in equity investors. Once the agreement is finalized, months of rumors about the volatile businessman backing out of the takeover will be put to rest.
Musk has presented himself as a free speech defender, but he has been critical of Twitter's approach to policing bigoted or violent content, which he claims has resulted in the suspension of some notable conservatives.