Elon Musk just revised his Twitter takeover funding plan. Now the entrepreneur and his partners plan to directly contribute $33.5 billion to cash put main online social. This is what follows from the filing with the Securities and Exchange Commission (SEC), the federal agency responsible for monitoring financial markets. By increasing the supply of cash, Elon Musk is drastically reducing the exposure of banks to leverage. Initially, the richest man in the world signed up for 25.5 billion loans. According to the new funding plan, the Tesla founder will only borrow $13 billion of a planned $44 billion. In particular, the billionaire turned to Morgan Stanley Senior Funding with a request to raise funds.
Elon Musk is donating $6 billion cash
To reduce the amount of loans taken out, Elon Musk put an additional $6.25 billion on the table. The SEC statement did not specify whether these are Elon Musk’s personal assets or funds provided by partners. To implement the project, the entrepreneur really surrounded himself with a dozen investors. Among the big names involved, on find Binance, a cryptocurrency exchange, and investment funds like Sequoia Capital, Fidelity, or a16z. Elon Musk clearly wants to be emancipated maximum banks. This change is likely intended to reassure Tesla shareholders. Many investors didn’t appreciate that the loans made by Elon Musk were backed by the firm’s stock. automobile, according to France 24. To get a loan, the billionaire was forced to place his shares on the stock market, which represent the bulk of his fortune, as collateral. The announcement seems to confirm Elon Musk’s desire to stage main online social. Over the past few weeks, the founder of Tesla has not ceased to criticize this topic. The entrepreneur, in particular, threatened to cancel the takeover if Twitter did not publicly disclose the number of fake accounts. He even asked the US authorities to launch an investigation into the matter. These delays seem to be designed only to lower the price of the ransom. According to a collective complaint filed by some shareholders, the billionaire deliberately manipulated the market to drive down the price. The lawsuit, filed in a California court, alleges that “Musk made statements, posted tweets and took other actions designed to sow doubt and substantially lower Twitter shares in order to create a breather that he hoped to use to exit the deal or renegotiate prices.” This is not the first time Elon Musk has been accused of market manipulation. The billionaire has an annoying habit of posting information on Twitter that could affect the price of a stock. In 2018, he notably announced Tesla’s exit from the stock market before withdrawing his announcement, sparking a wave of panic. Believing that Musk knowingly shared false information, the SEC imposed a fine of 20 millions dollars to an eccentric entrepreneur.
