Updated Thursday, May 26, 2022 –
03:38
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After the announcement, which was well received by investors, the company’s stock rose in Wall Street after-hours trading
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Elon Musk raised to 33,500 million dollars the sum contributed directly by the entrepreneur and his partnersfor the purchase of Twitter, further lowering the amount of bank credit.
After the announcement, which was well received by investors, the company’s stock rose in after-hours trading on Wall Street. By 10:00 p.m. GMT, the stock had risen by more than 5%.
Musk, who had initially borrowed $25.5 billion reduced these credits to 13,000 million dollars, according to the document registered on Wednesday by the American Securities and Exchange Commission (SEC), which considerably lightens its financial burden.
In early May, several Twitter shareholders had agreed to contribute their titles to the operation and continue to be a minority in the capital once it is withdrawn from the stock exchange company.
The appreciation of his titles reduced the money that Musk had to contribute by the same amount.
On Wednesday, Musk announced that he had received new direct commitments, that allowed it to reduce the amount of its loans subscribed for the acquisition by an additional 6,250 million.
It does not specify whether the amount came, in whole or in part, from his personal assets, or if other investors joined him.
The $12.5 billion in loans that were ultimately not needed some of the analysts worried, because they were loans backed by Tesla securities; Musk’s electric car company. That would create a relationship with the car manufacturer, which the market disliked.
According to CNBC, Musk talks with several people, including the co-founder and former CEO of Twitter, Jack Dorsey, to join the project and contribute, either in cash or company shares.
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