Elon Musk Is Changing The Way He Buys Twitter

It was stated that Tesla's CEO, successful businessman Elon Musk, will not use the stock guarantee method to buy Twitter, one of the popular social media platforms, and is in talks to finance the missing part of the purchase price by finding capital from investors.

It is stated that Elon Musk has given up using Tesla shares, which he plans to provide some of the financing to buy Twitter, as collateral and will increase the equity portion of the financing to 33.5 billion dollars. Famous businessman Musk planned to take a loan of $ 12.5 billion by initially showing his Tesla shares as collateral for the financing of the Twitter deal, but later found additional investors and reduced this figure to $ 6.25 billion. According to statements made on Wednesday, Elon Musk will find an additional $6.25 billion in equity financing for the $44 billion acquisition. It is stated that this figure is sufficient to give up the same amount of secured loan. Considering the recent decline in Tesla shares, it was noted that the new financing structure will reduce the risks for both Musk and the banks that provide loans. Continuing decline in Electric Vehicle Giant Tesla shares may pose risks on the deal Share value of the electric vehicle maker has dropped nearly 40 percent since Musk announced in early April that he had purchased Twitter shares. It was discussed that if the decline continues, the shares offered by the famous billionaire may risk not having sufficient provision for the secured loan. While Musk is still expected to find a capital of 33.5 billion dollars, it is stated that the famous businessman may choose to solve this problem by turning to other investors. It is among the information that Musk, who is in search of additional financing, has been meeting with many investors, including Twitter founder Jack Dorsey, for a while and discussing them to bring their capital to invest in the company.