10.5 C
New York
Saturday, January 28, 2023

Buy now

Twitter plans to close deal with Elon Musk on original bid of $44 billion, says JPMorgan

Twitter plans to close its deal with billionaire Elon Musk on its original offer of $44 billion, JPMorgan said Wednesday. The deal is likely to close on previously agreed price and terms, said Anu Aiyengar, the global co-head of mergers and acquisitions at JPMorgan Chase & Co.

The deal’s closing will put an end to months of speculation that the erratic entrepreneur will call off the takeover. This is the clearest sign yet that Musk plans to meet a Delaware judge’s deadline to complete the transaction by October 28.

Earlier this month, he had suggested going ahead with his original $44 billion bid, calling for the termination of a lawsuit by the social media giant that could have forced him to pay. JPMorgan and Goldman Sachs are Twitter’s financial advisors.

Also on Tuesday Bloomberg had reported that Musk had promised to complete his Twitter acquisition by Oct. 28 in a videoconference call with bankers who helped fund the deal. The report quoted people with knowledge of the case.

A report from Reuters also quoted a source as saying Musk had briefed fellow investors to help fund his takeover of the social media company. Equity investors, including Sequoia Capital, Binance, Qatar Investment Authority and others, have received the necessary paperwork for the funding commitment from Musk’s lawyers, the source added.

The Bloomberg The report also stated that banks committed to financing Musk’s Twitter buyout have finished drafting the final debt financing agreement and are in the process of signing the necessary documents.

Twitter shares jumped on the news, rising 3 percent on Tuesday at $52.95, closer to Musk’s bid price of $54.20. He has pledged $46.5 billion in equity and debt financing for the acquisition, which will cover the $44 billion price tag and closing costs.

Banks, including Morgan Stanley and Bank of America Corp, have pledged to provide $13 billion in debt financing to support the deal. Equity investors, including Oracle Corp co-founder Larry Ellison and Saudi Prince Alwaleed bin Talal, will bring in $7.1 billion.

Musk calls himself a supporter of free speech and has criticized Twitter’s approach to monitoring violent or hateful content that has led to a ban on many prominent conservative voices.

(With input from the agency)

Read all Latest technical news here

Source link

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
3,681FollowersFollow
0SubscribersSubscribe

Latest Articles