Elon Musk to Provide Extra $6.25Bln to Fund Twitter Deal
© AP Photo / John RaouxElon Musk founder, CEO, and chief engineer/designer of SpaceX speaks during a news conference after a Falcon 9 SpaceX rocket test flight at the Kennedy Space Center in Cape Canaveral, Fla, Jan. 19, 2020.
© AP Photo / John Raoux
In April, Musk reached an agreement with Twitter to buy the social media network for $54.20 per share, valuing the micro-blogging site at $44Bln.
According to financial filings made public on Wednesday, billionaire entrepreneur Elon Musk has increased the amount of his obligations to finance the deal to buy Twitter by $6.25Bln.
This will reduce Musk's debt to finance the acquisition.
He is prepared to spend $33.5Bln in total. According to reports, the businessman abandoned plans to partially finance the deal with the help of bank loans levied on his stake in Tesla.
Musk agreed to buy Twitter at the end of April, in a deal estimated to be $44Bln. Initially, the world's richest man planned to borrow $25.5Bln from the banks and pay another $21Bln of his own money. On 13 May, he announced the suspension of the transaction because the need arose to check how many fake accounts the social network had. Later, Elon Musk announced that he would not buy Twitter until the number of bots was less than 5 percent.
Earlier, Musk said that he would like to revolutionise Twitter’s role in public debate, as "free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated".