When making the proposal to take Twitter for about US$ 44 billion (R$ 218.5 billion), billionaire Elon Musk prepared a financial engineering to ensure that he will have the necessary resources available to close the deal.
Richest man on the planet according to Forbes’ list of billionaires, with an estimated fortune of approximately US$ 219 billion (R$ 1.1 trillion), the Tesla CEO said he will use a part of his savings to have his own network. Social.
When announcing on Monday (25) the closing of the agreement to acquire Twitter, Musk said that he will disburse almost half of the total amount – about US$ 21 billion (R$ 104.3 billion) – in personal assets – in the individual.
Details about the origin of the personal money to be disbursed by the billionaire were not released until Tuesday afternoon.
The model designed for the operation, however, has put strong pressure on other businesses of the South African billionaire – electric car maker Tesla, for example, saw its shares sink more than 10% in the trading session on Tuesday (26). ), with investors fearful of the possibility that Musk will have to sell part of his stake in the company to be able to honor the commitment made in the financing of Twitter.
Tesla shares tumbled more than 11% on Tuesday, wiping about $125 billion from the automaker’s market cap.
According to a report by Bloomberg, among other hypotheses raised by market experts for Musk to guarantee the necessary resources, are attracting partners to invest in the business or sell assets other than the companies under his control — cryptocurrencies, for example.
In any case, in addition to proprietary capital, Musk must still have a collective loan of up to US$ 25.5 billion (R$ 126.6 billion) with large Wall Street banks, led by Morgan Stanley, which advised the billionaire. during the negotiations via Twitter.
Of the amount to be raised with market agents, about US$ 12.5 billion (R$ 62 billion) will come from a loan guaranteed by the stake held by Musk in the automaker Tesla. The billionaire’s share of the electric vehicle maker is estimated at around US$170 billion.
The other US$ 13 billion (R$ 64.5 billion) should be obtained in the market through the issuance of debts of companies controlled by the entrepreneur.
People familiar with the deal say Musk would have agreed to pay a fine if the deal failed for reasons unrelated to funding problems.
Values ​​announced in the sale of Twitter
– US$ 44 billion
Amount announced for the acquisition of Twitter by Elon Musk
– US$ 21 billion
Equity the billionaire said he would use in the business
– US$ 23.5 billion
Crowdfunding of banks led by Morgan Stanley
– US$ 12.5 billion
Portion of crowdfunding that will be guaranteed by Musk’s stake in Tesla
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