Even for the richest man on earth, $ 43 billion is a large sum. The price offered by Elon Musk to buy Twitter is one-sixth of his fortune (amounting to $ 250 billion), but it is certainly not an amount that the billionaire CEO of Tesla has in cash.
As reported by Money Reviewthe vast majority of his wealth is his stake in Tesla, which, after all, has skyrocketed his fortune to these levels.
Bloomberg estimates that Musk has about $ 3 billion in cash or other liquid assetsafter spending $ 2.6 billion to acquire 9.1% of Twitter.
What options does Musk have to find? money to buy Twitter (provided of course that the other shareholders of the company accept his offer)?
One solution would be to sell Tesla shares. To find the other $ 36 billion he needs, he would have to sell about 36.5 million Tesla shares, or about one-fifth of his stake. That, however, would risk knocking out Tesla’s stock and of course, to raise questions about its commitment, financial and not only, to the automotive industry.
Another option would be a leveraged buyout, that is redemption through borrowed funds, with external partners.
And the third solution would be to lend its shares to Tesla and SpaceX with a guarantee.
But even for the richest man in the world, there are limits: Bloomberg estimates that Musk has already borrowed about $ 20 billion as collateral, which means he has room to borrow another $ 35 billion with this way.
Money Review
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