Elon Musk on Wednesday pledged an additional $6.25 billion in equity financing for a $44 billion offer for Twitter Inc, to void the billionaire’s margin debt against his Tesla Inc shares.
Disclosures made in a regulatory filing on Wednesday indicated that Musk is working to complete the deal, even though he last week added to his progress on Twitter by offering evidence that spam bots account for more than 5% of total users. were responsible for less.
The world’s richest man and Tesla’s top boss, suspecting that spam bots have at least 20% of its users, suggested that he may be asking for a lower price for the social media company.
Musk said Wednesday that he is also in talks with shareholders, including Jack Dorsey, for additional financing commitments for the deal.
Shares of Twitter jumped nearly 6% to $39.15 in extended trading. Musk could not immediately be contacted for comment.
He initially took out a margin loan of $12.5 billion, but reduced it to $6.25 billion after bringing in co-investors earlier this month.
In April, Musk invested $46.5 billion in debt and equity financing to buy Twitter, with Musk himself investing $33.5 billion. read more
Following Musk’s offer, Twitter’s board initially voted to adopt a poison pill that limited his ability to raise his stake, but later voted unanimously to accept his buyout proposal.
Twitter said last week that it was committed to the deal at an agreed-upon price of $54.20. Separately, at an annual shareholder meeting on Wednesday, Twitter investors blocked re-election to the board of an aide of Musk.
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