Electric Vehicles

Twitter Buyout in Doubt as Musk Financing Put on Hold


Elon Musk’s to-ing and fro-ing on whether to complete his Twitter buyout have cut off his efforts to arrange new financing that would limit his cash contribution to the deal.

The $44 billion Twitter buyout has been put on hold because of the uncertainty surrounding the deal, sources say.

Musk has been threatening to walk away from the deal unless the social media company provides him with data to back up its estimate that false or spam accounts comprise less than 5% of its user base.

This culminated in a letter from Musk’s lawyers to Twitter on Monday warning he may walk away unless more information is forthcoming.

Musk is on the hook to pay $33.5 billion in cash to fund the Twitter buyout after arranging debt financing to cover the rest.

His liquidity is limited given that his wealth, which is pegged by Forbes at $218 billion, is largely tied to the shares of Tesla, the electric car maker he leads.

Musk sold $8.5 billion worth of Tesla shares in April after he signed his Twitter buyout deal, and it is not clear how much cash he has available to meet his obligation.

He has said he raised $7.1 billion from a group of equity co-investors to reduce his contribution. Musk also sought to reduce this exposure further by arranging a risky $12.5 billion margin loan tied to the shares of Tesla, but then scrapped it last month.

Musk has been in discussions to arrange $2 billion to $3 billion in preferred equity financing from a group of private equity firms led by Apollo Global Management that would further reduce his cash contribution.

This is now on hold until there is clarity about the future of the acquisition, a source said.


  • Reuters, with additional editing by George Russell






Musk Floats 10% Tesla Staff Cut Plan as Outlook Darkens

Musk Plan for a Million on Mars by 2050 a Delusion – Gizmodo

Elon Musk Hints at Unveiling Tesla Humanoid Robot Prototype


George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

Recent Posts

ADB Agrees to $300m Loan to Transform Chinese Coal City

The Asian Development Bank said on Saturday it approved a $300 million loan to Changzhi…

20 hours ago

China’s Factory Activity Expanded in September, Survey Finds

Official manufacturing survey for September suggests the country's economy is beginning to bottom out, analysts…

21 hours ago

China Wants to be World’s Dominant Power: Blinken – AFP

China wants to surpass the United States and recover what they believe is their rightful…

2 days ago

China May Ease Some Data Rules in Breather for Foreign Firms

Foreign firms have been particularly concerned about stepping over the line while dealing with Chinese…

2 days ago

Beijing-Washington ‘Setting the Stage’ for Xi Jinping US Visit

While the planned diplomatic exchanges are aimed, in part, at restoring ties, Xi is also…

2 days ago

Indian Hackers Target Canada’s Government Websites – CTV

The Canadian Armed Forces site was hit, as well as the country’s House of Commons…

2 days ago