Elon Musk on Wednesday pledged an additional $6.25 billion in equity financing to fund the $44 billion bid for Twitter Inc, reducing the billionaire’s margin loan against his Tesla Inc stock to zero.
While doubting spambots make up at least 20% of users, the world’s richest man and Tesla boss had suggested he might charge a lower price for the social media company.
It initially took out a $12.5 billion margin loan, but earlier this month cut it to $6.25 billion after bringing in co-investors. By April, Musk had lined up $46.5 billion in debt and equity financing to buy Twitter, with Musk himself committing $33.5 billion.
After Musk’s bid, Twitter’s board initially voted to pass a poison pill that limited its ability to increase its stake, but then voted unanimously to accept his takeover offer.
Twitter said last week that it had committed to closing the deal at the agreed price of $54.20. Separately, at an annual shareholder meeting on Wednesday, Twitter investors blocked the re-election of a Musk ally to its board.