Musk had to convince the banks that Twitter produced enough cash flow to service the debt he sought. In the end, he clinched $13 billion in loans secured against Twitter and a $12.5 billion margin loan tied to his Tesla Inc stock.
Musk’s purchase of Twitter is the third biggest tech deal done so far. It is preceded by the 2016 Dell-EMC deal worth $67 billion and AMD’s acquisition of Xilinx worth $50 billion in 2022.
Twitter Inc, which has agreed to a $44 billion sale to Elon Musk, fell 0.4%, as overall revenue and advertising sales fell short of analyst estimates, due to the ongoing war in Ukraine.
Dorsey holds 2.4 per cent or a little over 18 million shares in the company and after once the $44 billion deal is closed, his Twitter shocks will be converted into cash, reports The Warp.