Tesla CEO Elon Musk will have to make a payment of a whopping USD 44 billion in order to purchase the majority shares of Twitter.
SpaceX and Tesla CEO Elon Musk has found himself in a tough spot after Twitter filed a lawsuit against him due to the deal he made to purchase the majority share of the microblogging social media platform.
While the court judge has given Musk a few days by accepting his request to halt the lawsuit filed against him by Twitter, the SpaceX founder is still on the hook for purchasing the major shares of Twitter for the whopping amount of USD 44 billion.
Even though Elon Musk is currently the richest man in the world, but is still expected to experience some trouble while producing the massive amount of 44 billion dollars for the purchase of Twitter, which has been put on hold till October 28.
Musk said earlier this week he would buy Twitter for $54.20 per share, the price that was agreed upon in April, but included a condition that the closing of the deal is contingent on debt financing for the transaction coming through.
How will Elon Musk buy Twitter?
Musk 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 and Bank of America Corp, committed to providing $13 billion of debt financing to support the deal.
Meanwhile, experts have said that the banks on the hook for the Twitter transaction have limited their ability to walk away from the contract despite the prospect that they may face major losses, while one of the banks reportedly said that Musk had not communicated that he was closing the transaction yet.
Musk’s $33.5 billion equity commitment would include his 9.6% Twitter stake, which is worth $4 billion, and the $7.1 billion he secured from equity investors, including Oracle Corp co-founder Larry Ellison and Saudi Prince Alwaleed bin Talal.
When it comes to the cash transaction, it is expected that the Tesla CEO currently has around $ 20 billion in cash, making him fall short of around 2-3 billion dollars for the purchase of Twitter, which can further be acquired by selling Tesla shares.
This means that to rustle up the remaining amount, Muks has the option of selling his Tesla or SpaceX stake, obtaining a loan from banks against the stocks, or getting more investors to contribute equity.
(With Reuters inputs)
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 "DNA Explainer: How is Tesla CEO Elon Musk planning to buy Twitter for USD 44 billion?")
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