This time, Elon Musk Twitter deal might actually be a reality. According to reports, Twitter will be owned by Elon Musk by Friday. Bloomberg reports that during a video conference call yesterday, Musk stated that the acquisition of Twitter would be completed this coming Friday, October 28.
Elon Musk Twitter deal is coming to an end on October 28th
With the financial firms financing the transaction, Musk held a conference call. A $13 billion line of credit from them is reportedly being opened by Musk. According to the persons, who declined to be identified because the matter is private, the banks, who are providing $13 billion in debt financing, have completed drafting the final credit agreement and are currently engaged in the process of signing the paperwork.
According to an earlier Bloomberg article, the Wall Street lenders, led by Morgan Stanley, had already begun planning in recent weeks to fund the loan. But with Musk, the erratic billionaire who just a few weeks ago sought to back out of the agreement, nothing is ever definite. According to Bloomberg, these most recent events imply that he is close to completing the sale before the deadline of October 28.
According to the sources, Musk pledged to assist the banks in marketing the debt to money managers after the sale closes.
That is crucial for the group of seven banks, who were abandoned following Musk’s abrupt decision to proceed with the purchase of Twitter in early October. Prior to a transaction closing, the banks would typically unload debt commitments to money managers in the form of leveraged loans and junk bonds, but the shortened deadline and a worsening of credit conditions around the world have obliged them to keep the debt on their books.
On October 4, the CEO of Tesla and SpaceX reaffirmed his buyout offer for Twitter at the previously established price of $44 billion; the company quickly accepted. After months of conflict between the two parties, a new agreement that had the same provisions as the last one was reached. Prior to Twitter falling out of the arrangement, Musk had charged the firm with lying about its user numbers and demanded that it demonstrate that less than 5% of its user accounts were fraudulent. Twitter responded by suing Musk for breach of contract and demanding $1 billion in damages.
Elon Musk Twitter deal may lead to layoffs
According to reports, Musk intends to drastically reduce Twitter’s employment, from around 7,000 employees down to 2,500, a 75% reduction. The billionaire acknowledged that he was “clearly overpaying” for the social media behemoth during the most recent Tesla earnings call, but added that the company’s long-term potential was “order of magnitude greater” than it was in its present state.
Musk restated his desire yesterday in a Twitter post for the social media platform to adopt a different approach to content moderation and filtering, though he has not yet responded to the most recent story.
Twitter should be as broadly inclusive as possible, serving as a fair forum for lively, even if occasionally rancorous, debate between widely divergent beliefs.
— Elon Musk (@elonmusk) October 25, 2022
Twitter should be as inclusive as it can be, acting as a fair arena for vigorous, though occasionally heated, discourse between drastically different points of view. And Musk responded with the “100” emoji when a Dogecoin enthusiast asked if he could simply make the platform more entertaining.
— Elon Musk (@elonmusk) October 25, 2022
The overall cost of the Elon Musk Twitter deal is $44 billion. The banks agreed to offer the debt funding in April, when investor demand for hazardous assets was at its peak. Initially, the banks planned to issue leveraged loans worth $6.5 billion and trash bonds worth $6 billion, divided equally into tranches that were secured and unsecured.
They also granted a $500 million revolving credit facility, a particular kind of loan generally held by banks that Twitter will be able to borrow from and repay until maturity, according to Bloomberg.