Deals
Musk’s Twitter Bid Drops Margin Loan But Needs More Cash
- Bid’s equity component upped by $6.25 billion to $33.5 billion
- The structure could reduce risk from slump in Tesla stock
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Elon Musk is dropping plans to partially fund his purchase of Twitter Inc. with a margin loan tied to his Tesla Inc. stake and increasing the size of the deal’s equity component to $33.5 billion.
Musk will provide an additional $6.25 billion in equity financing for the $44 billion buyout, according to a regulatory filing Wednesday. That’s enough to eliminate the margin loan of the same size, which had already been reduced earlier this month.