Published , by Donovan Erskine
Published , by Donovan Erskine
After Twitter (TWTR) elected to accept Elon Musk’s offer to acquire Twitter last month, the multi-billionaire was looking at options to finance the deal. This included taking out a margin loan with his company Tesla (TSLA) in order to gather the necessary funds. However, it now looks like Musk may not need to further involve Tesla in the matter, as he’s raised $7.1 billion in equity from different investment groups.
It was revealed by Reuters that Elon Musk had accrued quite the sum in funding for his pending Twitter (TWTR) acquisition. Investors include Sequoia Capital, Qatar Holding, Larry Ellison, Alwaleed bin Talal. Musk has managed to raise a total of $7.1 billion. This removes a sizable amount from the $12.5 billion that he was planning to take out in a margin loan from Tesla (TSLA). If he continues to raise equity, Tesla might be off the hook entirely.
It’s certainly good news for Tesla (TSLA) stock, which was already seeing some turbulence after the initial proposal. Tesla was up on the news earlier in the day, hitting a high of $755.71 and rebounding from the $701 valuation it was at just hours prior. Tesla (TSLA) had fallen as far as 25 percent following the news that Elon Musk would be acquiring Twitter (TWTR).
It remains to be seen just how much money Elon Musk will be able to raise from investors in order to fund his Twitter (TWTR) purchase. It’s certainly been a matter on the minds of many in the financial space, as evident by the questions Musk has fielded on the situation at recent appearances. As we await to see when the deal will become official, stick with Shacknews for your latest updates on Elon Musk and Twitter.