Elon Musk dumps billions of dollars in Tesla shares to buy Twitter

News hardware Elon Musk dumps billions of dollars in Tesla shares to buy Twitter

Elon Musk bought Twitter, but not everything is finalized yet. Elon, in an effort to find sources of financing, sold several billion dollars in shares of his Tesla company.

Nearly 10 million shares of Tesla sold by Elon Musk

Even for the richest man in the world, buying one of the biggest social networks is no small feat. For the past few days, we have had confirmation that Elon Musk will indeed be the new owner of Twitter, after shareholders accepted the offer from the boss of Tesla.

Between Tuesday and Friday of last week, several sales of Tesla shares from the interested party were reported by the Securities and Exchange Commission (SEC), the American financial market regulator.

In total, this concerns 9.6 million shares, or 8 billion euros.

We do not officially know the reason for these sales, but we suspect that they relate to fundraising to compensate for the 40 billion euros needed to buy Twitter.

It may be surprising to see Elon Musk parting ways with part of his baby, and proves the importance he gives to the acquisition of the social network.

But where does the rest of the 40 billion to buy Twitter come from?

For the deal to be finalized, it is imperative that two-thirds of the total amount of the transaction comes directly from the pockets of Elon Musk. It will therefore only be entitled to 13 billion euros in bank loans.

He will therefore have to amass 27 billion in order to take control of the little blue bird, and even if he has the largest portfolio in the world, these 8 billion shares will not be enough, his fortune coming mainly from shares in businesses.

Elon Musk has confirmed he’s done with Tesla stock sales, but it is very likely that he will start to dip into the reserves of SpaceX and The Boring Company, which he also owns.

While the exchange with Twitter is not yet finalized and still requires SEC approval, the two parties are already engaged. If Elon Musk fails to raise the necessary funds, or if Twitter retracts or accepts a competing offer, the culprit will have to pay the whopping one billion dollars (950 million euros) to the other party.


By RommBJournalist jeuxvideo.com

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