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Online business & e-commerce

Elon Musk informs co-investors he plans to close Twitter deal by Friday - report

Musk, the world's richest man, has pledged to provide $46.5 billion in equity and debt financing for the acquisition, which covers the $44 billion price tag and closing costs

Elon Musk has notified co-investors who committed to help fund his $44 billion acquisition of Twitter Inc (NYSE:TWTR) that he plans to close his buyout of the social media firm by Friday, Reuters has reported quoting a person familiar with the matter.

Equity investors, including Sequoia Capital, Binance, Qatar Investment Authority and others have received the requisite paperwork for the financing commitment from Musk's lawyers, the source told the newswire.

The move is the clearest sign yet that Musk plans to comply with a Delaware court judge's deadline to complete the transaction by Friday.

The banks that committed to fund Musk's buyout of Twitter have finished putting together the final debt financing agreement and are in the process of signing the necessary documents, according to a Bloomberg News report. Musk pledged to close the deal on a video conference call on Monday with bankers who are helping fund the deal, the report added.

READ: Banks financing Elon Musk's Twitter takeover to hold onto debt - report

Musk, the world's richest man, has pledged to provide $46.5 billion in equity and debt financing for the acquisition, which covers the $44 billion price tag and closing costs.

Banks, including Morgan Stanley (NYSE:MS) and Bank of America Corp (NYSE:BAC), have committed to provide $13 billion of debt financing to support the deal. Equity investors, including Oracle Corp co-founder Larry Ellison and Saudi Prince Alwaleed bin Talal, will pitch in with $7.1 billion.

The closure of the deal will put to rest months of speculation that the Tesla Inc (NASDAQ:TSLA) CEO would abandon the controversial takeover.

Twitter shares were changing hands at around $53.18 in pre-market trading on Wednesday, edging closer to Musk's offer price of $54.20.

Contact the author at jon.hopkins@proactiveinvestors.com

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