All said and done: This is how Elon Musk will pay $44 billion for Twitter
Elon Musk Twitter Deal: Elon Musk had said that he would buy Twitter for $54.20 per share- the price which was agreed in April.
As a judge accepted Elon Musk's request to halt a Twitter lawsuit against his proposed $44 billion buyout of the social media company by October 18 on Thursday, the billionaire has a minute to breathe but not more than that as the next big question following the deal will be: How will Elon Musk pay for Twitter?
Earlier this week, Elon Musk had said that he would buy Twitter for $54.20 per share- the price which was agreed in April.
What is Elon Musk's financing plan?
Elon Musk has pledged to provide $46.5 billion in equity and debt financing for Twitter's acquisition. This will cover the $44 billion price tag and closing costs. Morgan Stanley and Bank of America Corp will likely provide $13 billion of the debt financing.
Read more: Why did Elon Musk change his mind on Twitter deal: Explained
The remaining will come from Musk's $33.5 billion equity commitment including his 9.6% Twitter stake and the $7.1 billion from equity investors. That will leave a shortfall of $22.4 billion.
How will Elon Musk fill the shortfall?
Elon Musk could either choose to sell more of his stake in Tesla, or in SpaceX. He could also obtain a loan from banks against the stocks or get more investors.
Does Elon Musk have more equity investors?
Oracle founder Larry Ellison had said in April that he was interested in participating in the deal as one of the investors in Twitter becoming a part of the group of investors who have promised to give &7.1 billion of the financing.