According to a recent SEC filing, Tesla CEO Elon Musk will commit $33.5 billion for his bid to buy out Twitter. According to an SEC filing dated May 24, Elon Musk, billionaire CEO of Tesla’s electric carmaker, will increase his personal commitment to his Twitter takeover bid by $33.5 billion.
A revised financing plan would add $6.25 billion equity to the buyout. This amount would be sufficient to liquidate the same amount as margin loans against Tesla stock, which was reduced earlier in the month.
This would increase the equity financing component to the deal from $27.25 billion Musk in May to $33.5 billion.
According to the statement by Tesla Chief, he is also in discussions with “certain existing shareholders”, including Jack Dorsey, former CEO of Twitter, to finance the deal that would see the social media giant become private.
The Tesla CEO stated his commitment to the completion of the deal. This is currently on hold. Musk previously stated that he would not move forward with the acquisition unless Twitter provides additional information on spambots on the platform.
After-market trading saw Twitter shares rise 5.5% to $39.22 on Wednesday, following a 3.9% increase during regular trading.
Twitter’s shareholder meeting
Twitter held its shareholder meeting Wednesday, however. Associate Press reported that CEO Parag Agrawal stated “explicitly” during the meeting, that no questions would be answered by executives regarding Musk’s bid to buyout.
According to the report, shareholders who raised proposals for a vote still invoked Musk’s name. Musk had previously highlighted the concerns of free speech and content policies in some of these votes.
In other news, Dorsey has resigned from the board of directors at Twitter. Dorsey is currently the CEO at Block ( , formerly Square). resigned in November 2021 as Twitter’s CEO. However, he remained on Twitter’s board of directors until the 2022 shareholders meeting.
Musk’s Twitter Takeover Plans
In April, Elon Musk announced his interest in purchasing Twitter and making it private. Twitter’s board approved billionaire’s $44-billion takeover offer on April 25th. Crypto exchange Binance, along with several prominent investors pledged financial backing for the acquisition.
Musk has several plans for Twitter, including making the code open-source, adding an edit button, fighting spambots, and fighting fake accounts that promote scam crypto giveaways.
Musk also suggested the addition of the meme cryptocurrency Dogecoin (DOGE), as a payment option to users of Twitter Blue’s premium subscription service. He suggested that, should he be successful with the takeover, Twitter might become an “superapp”, similar to China’s WeChat. In-app payments could also be added. He tweeted that if he owned Twitter, it would be “geared toward the middle 80%, so technically, the far left or far right would likely be dissatisfied.”
Musk stated earlier this month that he wanted to verify reports claiming up to 5% of Twitter users are “spam/fake accounts”.
