It seems that Elon Musk will finally close the Twitter deal pretty soon. In a closed session with investors, banks and other lendersMusk reportedly said he would finalize the deal with Twitter by this Friday and will soon sign the paperwork needed to finalize the deal.
Musk was also able to raise $13 billion in loans from banks and lenders to complete the transaction. All this means that the teams at Musk and Twitter only have to sign the papers and submit them to the relevant authorities. According to people familiar with the matter, this will be the final phase before the funds go to Musk.
The debt-servicing banks received a credit notice on Tuesday. The money is expected to be held in escrow on Thursday, according to people familiar with the matter.
Sources claim that investors backing Musk in his bid to buy Twitter include private equity investors such as Sequoia Capital, Binance, Qatar Investment Authority, and others.
The banks committed to funding Musk’s acquisition of Twitter have completed the definitive debt financing agreement and are in the process of signing the required documents.
When news broke that the deal was finally closing this week, Twitter shares jumped on the news, trading up 3% on Tuesday at $52.95, closer to Musk’s asking price of $54.20.
If all goes as planned, Musk will need to provide $46.5 billion in equity and debt for the acquisition, which will cover the $44 billion price tag and closing costs.
Barring a new issue that could potentially derail the acquisition process this week, Musk will hold his side of the bargain to wrap up Acquisition process until October 28ththe deadline set by the Delaware court hearing the arguments in the Twitter v. Musk case.
As previously reported, there is a very small, albeit real, possibility that The US government may need to step in and prevent the takeover, citing national security. As slim as these chances are, there is a very good reason why the US government might consider it.
Twitter, meanwhile, has not responded to the developments and is awaiting an actionable moment to respond.
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