{"id":434341,"date":"2022-04-19T19:37:16","date_gmt":"2022-04-19T16:37:16","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/elon-musk-scrambles-to-find-backers-for-twitter-takeover-sources\/"},"modified":"2022-04-19T19:37:16","modified_gmt":"2022-04-19T16:37:16","slug":"elon-musk-scrambles-to-find-backers-for-twitter-takeover-sources","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/elon-musk-scrambles-to-find-backers-for-twitter-takeover-sources\/","title":{"rendered":"#Elon Musk scrambles to find backers for Twitter takeover: sources"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3cb03699927\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3cb03699927\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/elon-musk-scrambles-to-find-backers-for-twitter-takeover-sources\/#%E2%80%9CElon_Musk_scrambles_to_find_backers_for_Twitter_takeover_sources%E2%80%9D\" >&#8220;Elon Musk scrambles to find backers for Twitter takeover: sources&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CElon_Musk_scrambles_to_find_backers_for_Twitter_takeover_sources%E2%80%9D\"><\/span>&#8220;Elon Musk scrambles to find backers for Twitter takeover: sources&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n<\/aside>\n<p>Elon Musk is the richest person in the world, but he\u2019s scrambling to assemble a buyout bid for <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> using other people\u2019s cash.<\/p>\n<p>The Tesla tycoon \u2014 who is worth $270 billion, according to Forbes \u2014 is angling to finance his $43 billion bid to acquire Twitter in a complex deal that raises debt against both the company and possibly his own stock, as well as a giant cash equity infusion from co-investors, The Post has learned.<\/p>\n<p>Still, insiders say Musk <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to be facing hurdles in raising the money. In addition to doubts about whether Twitter is worth the $54.20 a share that Musk offered on Thursday, sources said some investors appear skittish over his pattern of unpredictable behavior and taste for controversy.<\/p>\n<p>Musk himself is willing to invest between $10 billion and $15 billion of his own cash to take Twitter private, two sources close to the situation said. That\u2019s up from the current 9.1% stake in the company he revealed on April 4, which is worth about $3.4 billion.<\/p>\n<p>Musk may also be willing to borrow against his current stake if necessary, a move that could possibly raise several billion additional dollars, sources said. <\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/elon-musk-tesla-twitter-1.jpg?w=1024\" alt=\"Insiders say Elon Musk appears to be facing more trouble than expected in raising the money.\" class=\"wp-image-21955019\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/elon-musk-tesla-twitter-1.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/elon-musk-tesla-twitter-1.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/elon-musk-tesla-twitter-1.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Insiders say Elon Musk appears to be facing more trouble than expected in raising the money. <\/figcaption><figcaption><span class=\"credit\">TED Conferences, LLC\/AFP via Getty Images<\/span><\/figcaption><\/figure>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/elon-musk-texas-cowboy-hat-1.jpg?w=1024\" alt=\"Elon Musk\" class=\"wp-image-21953266\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/elon-musk-texas-cowboy-hat-1.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/elon-musk-texas-cowboy-hat-1.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/elon-musk-texas-cowboy-hat-1.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Musk has said Twitter might be \u201cdying,\u201d and even suggested scrapping its business model, which relies on selling ads.<\/figcaption><figcaption><span class=\"credit\">AFP via Getty Images<\/span><\/figcaption><\/figure>\n<p>\u201cThe co-investors will combined have more equity than Musk but he will be the biggest single holder,\u201d one of the sources said.<\/p>\n<p>Nevertheless, it\u2019s mainly outside financing that will carry the bid for Musk, who has tapped Morgan Stanley to raise another $10 billion in debt against Twitter in the manner of a traditional leveraged buyout, the sources said.<\/p>\n<p>As first reported by The Post on Friday, however, the bulk of the money \u2014 about $20 billion, according to sources \u2014 will come from co-investors who will finance a hostile tender offer directly to Twitter shareholders, sources said. Musk hinted at the hostile approach in a cryptic tweet over the weekend that quoted Elvis Presley\u2019s 1956 hit \u201cLove Me Tender.\u201d<\/p>\n<p>Musk is planning to launch the tender offer for Twitter in 10 days or so, sources said. Still, insiders say Musk appears to be having more trouble than expected in finding backers.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/Twitter-elon-musk-.jpg?w=1024\" alt=\"Elon Musk\" class=\"wp-image-21954808\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/Twitter-elon-musk-.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/Twitter-elon-musk-.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/Twitter-elon-musk-.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Musk told Twitter\u2019s board the social network \u201chas potential to be the platform for free speech around the globe.\u201d<\/figcaption><figcaption><span class=\"credit\">REUTERS<\/span><\/figcaption><\/figure>\n<p>According to a source, Musk\u2019s Twitter bid is drawing interest from investors who have poured cash into his prior ventures, including Tesla and SpaceX. On the other hand, sources note that most private equity firms prefer to stay away from political controversies and worry that they will not be able to control Musk, according to a source briefed on the process. <\/p>\n<p>Before disclosing his Twitter stake, Musk immediately began floating unusual ideas for the company including converting Twitter\u2019s San Francisco headquarters into a homeless shelter. Musk also said Twitter might be \u201cdying,\u201d and even suggested scrapping its business model, which relies on selling ads. <\/p>\n<p>Musk told Twitter\u2019s board the social network \u201chas potential to be the platform for free speech around the globe\u201d \u2014 an approach that has unleashed speculation he would reinstate Donald Trump\u2019s Twitter account, which was shut down following the Jan. 6, 2021, Capitol riot.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"683\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/twitter-musk.jpg?w=1024\" alt=\"Twitter logo\" class=\"wp-image-21953277\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/twitter-musk.jpg?quality=75&amp;strip=all&amp;w=2048 2048w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/twitter-musk.jpg?quality=75&amp;strip=all&amp;w=1536 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/twitter-musk.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/twitter-musk.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Twitter on Friday adopted a so-called \u201cpoison pill\u201d preventing Musk from acquiring more than 15 percent of the company, signaling that the price was too low.<\/figcaption><figcaption><span class=\"credit\">REUTERS<\/span><\/figcaption><\/figure>\n<p>\u201cPrivate equity firms don\u2019t get paid for headline risk,\u201d one source told The Post, referring to Musk\u2019s taste for controversy.<\/p>\n<p>Controversies aside, few private equity firms are willing to participate in a hostile bid, and Morgan Stanley is struggling to lure other banks to participate in the cash raise, sources said. Likewise, many appear doubtful whether Twitter is worth $43 billion, according to sources. <\/p>\n<p>That\u2019s despite the fact that Twitter on Friday adopted a so-called \u201cpoison pill\u201d preventing Musk from acquiring more than 15 percent of the company, signaling that the price was too low.<\/p>\n<p>\u201cA lot of private equity firms are doing the work and struggling on the valuation,\u201d a source said. \u201cThis is not growing like Instagram or TikTok.\u201d<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/elon-musk-twitter-2.jpg?w=1024\" alt=\"Musk's Twitter account\" class=\"wp-image-21953293\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/elon-musk-twitter-2.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/elon-musk-twitter-2.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/elon-musk-twitter-2.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Musk himself is to invest between $10 billion and $15 billion of his own cash to take Twitter private, two sources close to the situation said. <\/figcaption><figcaption><span class=\"credit\">REUTERS<\/span><\/figcaption><\/figure>\n<p>\u201cYou can only raise $10 billion of bank debt, and then maybe some preferred shares,\u201d another source added, referring to a type of debt that can be converted to stock. \u201cTwitter does not have a whole lot of cash flow.\u201d<\/p>\n<p>Time is tight, as Musk only began to make inquiries about financing a few days before he disclosed his stake, sources said. For his bid to succeed, he would have to win support from holders of a majority of Twitter stock to support a fully financed tender offer made directly to them. Then he could start a proxy contest trying to change the makeup of the board and remove the poison pill.<\/p>\n<p>Twitter\u2019s annual meeting is scheduled for May 25.<\/p>\n<p>Meanwhile, The Post reported last week that private equity firm Thoma Bravo is exploring its own bid for Twitter, and Thoma Bravo has since reportedly told Twitter about its plans.<\/p>\n<p>A Musk spokesman declined comment.\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/04\/19\/elon-musk-scrambles-to-find-backers-for-twitter-takeover-sources\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Elon Musk scrambles to find backers for Twitter takeover: sources&#8221; Elon Musk is the richest person in the world, but he\u2019s scrambling to assemble a buyout bid for Twitter using other people\u2019s cash. The Tesla tycoon \u2014 who is worth $270 billion, according to Forbes \u2014 is angling to finance his $43 billion bid to&#8230;<\/p>\n","protected":false},"author":1,"featured_media":434342,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/elon-musk-tesla-twitter-comp-1.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[128166,39394,61594,70584,73986,101596,72868,10401],"class_list":["post-434341","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-4-19-22","tag-elon-musk","tag-exclusive","tag-mergers-acquisitions","tag-morgan-stanley","tag-ny-post-exclusive","tag-private-equity","tag-twitter"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/434341","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=434341"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/434341\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/434342"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=434341"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=434341"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=434341"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}