Elon Musk lays out funding for ambitious Twitter takeover

Elon Musk has lined up the funding he needs for his proposed takeover of Twitter. In a new filing with the US Securities and Exchange Commission on April 21, Musk laid out his plan for the $46.5 billion worth of loans that will allow him to finance the buyout offer made on April 14th. The funding is provided through two debt commitment letters from Morgan Stanley Senior Funding, in which the bank commits to offering a series of loans worth $25.5 billion. The remaining $21 billion will be covered by Musk himself. Notably, the filing does not list any equity partners to share the cash burden with Musk. The Tesla CEO already owns a 9 percent stake in Twitter, valued at roughly $2.9 billion. The filing also makes clear that Twitter has not formally responded to Musk’s offer. “The Reporting Person is seeking to negotiate a definitive agreement for the acquisition of Twitter by the Reporting Person,” it reads, “and is prepared to begin such negotiations immediately.” Even with funding secured, taking over Twitter will not be easy. The company’s board of directors recently announced measures to block Musk’s hostile takeover. This maneuver, which is known in the finance world as a “poison pill,” allows certain shareholders to purchase more stock in an attempt to block Musk from holding a stake of over 15 percent, Reuters previously reported.