Twitter deal expected to close by Friday: Elon Musk

Bloomberg News reported on Tuesday that Elon Musk has pledged to complete the $44 billion Twitter acquisition by Friday and held a video conference with the bankers who will fund the deal.

According to reports, the bank has finalized a loan agreement, and Musk is in the process of signing paperwork as one of the final steps to send funds. Meanwhile, South Korea’s Mirae Asset Financial Group plans to allocate about 300 billion Korean won ($208 million) to Elon Musk’s $44 billion acquisition of Twitter Inc.

Agency sources said that a deal with Mirae is expected to close in the coming days, ahead of the Oct. 28 deadline for his Twitter deal. Musk has pledged $46.5 billion in equity and debt for the acquisition. 

Elon musk

This covers the $44 billion price tag and acquisition costs. In addition, banks, including Morgan Stanley and Bank of America, have pledged $13 billion in debt financing to back the deal. Twitter’s stock price rose 2.7% to take him to $52.9 and closer to Musk’s asking price of $54.20.

Equity investors, including Oracle co-founder Larry Ellison and Saudi Prince Alwaleed bin Talal, will step in with $7.1 billion. Earlier this month, a Delaware judge gave Musk a reprieve until Oct. 10. Complete his takeover of 28 social media platforms. 

Tesla investors fear the billionaire will sell more Tesla shares to fund the deal, putting pressure on his claims. Banks, including Morgan Stanley and Bank of America (BAC.N), have pledged $13 billion in debt financing to back the deal.

A deal would end months of speculation that unpredictable entrepreneurs would give up on acquisitions. Musk has depicted himself as a free speech advocate and has criticized Twitter’s approach to policing violent or hateful content.

Elon musk twitter deal

But there were doubts whether Musk’s originally planned funding would come to fruition as expected after months of sluggish markets, including the company and social media stocks. So, in addition to raising its own money, it looked to debt and equity financing for the deal; much of it likely came from selling Tesla shares.

Some experts have suggested that Musk may need to sell billions of dollars more in Tesla (TSLA) stock to fund the deal, but the company reported last week’s quarterly results. After the announcement, the move became easier for the CEO following the recent drop in automaker stock prices.

The Twitter deal’s completion will put an end to months of rumors that the unpredictable entrepreneur would back out of the acquisition.

Musk has promoted himself as a supporter of free speech and criticized Twitter’s strategy for policing violent or abusive content, which has resulted in banning several well-known conservative speakers.

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