Elon Musk has $3 billion in cash. How can he afford to buy Twitter?

Published

2 years ago

April 15, 2022

Elon Musk is no stranger to big expensive bets, but his $US43 billion takeover offer for Twitter raises an important question. Can he afford it?

Musk made his move not long after Twitter announced it had failed to reach an agreement with him about joining its board.

Musk has only just disclosed that he had purchased more than 9 percent of Twitter.

But his willingness to make the deal is now being met with questions about his ability to actually complete it — not just Twitter’s willingness to accept it.

Can he afford it?

Right now, according to Bloomberg, Musk has about $3 billion in readily accessible cash.

So he would have to find the money to complete the deal some other way.

That could include selling more shares in Tesla, or raising the cash through debt.

Musk owns about 173 million Tesla shares. But securities filings show that 88 million of them are being used to back personal loans.

In a securities filing, Musk says the proposal is his “best and final offer” while reiterating his disagreement with Twitter’s leadership over the company’s direction.

At least one major shareholder has already announced his opposition.

I don't believe that the proposed offer by @elonmusk ($54.20) comes close to the intrinsic value of @Twitter given its growth prospects.

Being one of the largest & long-term shareholders of Twitter, @Kingdom_KHC & I reject this offer.https://t.co/Jty05oJUTk pic.twitter.com/XpNHUAL6UX
— الوليد بن طلال (@Alwaleed_Talal) April 14, 2022

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Published

5 days ago

May 14, 2024

Nathan Langridge

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Also, GameStop shares have surged 74%, but experts caution against expecting a repeat of the 2021 meme-stock frenzy. #featured #trending

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On this episode of Hot Shots – Major airlines are suing the Biden Administration, AI-piloted fighter jets, SpaceX faces funding challenges, and Apple receives crushing feedback.

Ticker’s Ahron Young & Veronica Dudo discuss. #featured #trending

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Published

6 days ago

May 13, 2024

ticker NEWS

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Concerns extend to how Chalmers navigates the mounting pressure amid discrepancies in spending allocations.

Moreover, as Australians grapple with the reality of rising living costs, the feasibility of cutting spending becomes a pressing issue. Additionally, amidst economic uncertainties, individuals seek guidance on managing stock market risks effectively. #Featured #Trending