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While Elon Musk was delaying his Twitter buyout offer, a Delaware judge gave him a period until the 28th of October to close the deal
Tesla (NASDAQ: TSLA) CEO Elon Musk, who made a $44 billion bid to buy Twitter (NYSE: TWTR), has confirmed that the deal is expected to close this Friday. Many matters have arisen from the billionaire’s effort to attack the blue-bird company. Due to the challenges and hurdles that sprung up, many were already doubting if the offer would go through. However, Musk has revealed his plans to conclude the deal by Friday, 26th October 2022.
Elon Musk Is Reportedly Closing Twitter Deal by Friday
The matter was revealed by Bloomberg, which said that Musk told bankers helping fund the deal about the plan in a video conference call. Notably, the banks are providing the businessman with $13 billion of debt financing. The Tesla CEO pledged to provide $46.5 billion in equity and debt financing for the acquisition. Apart from the $44 billion price tag, the funds will cover the closing costs. Also, the likes of financial services companies Morgan Stanley (NYSE: MS) and Bank of America Corp (NYSE: BAC) have offered $13 billion of debt financing to Musk to support the deal. Separately, equity investors will table $7.1 billion. These investors include the co-founder of Oracle Corp (NYSE: ORCL), Larry Ellison, and Saudi Arabian businessman Al Waleed bin Talal Al Saud.
While Elon Musk was delaying his Twitter buyout offer, a Delaware judge gave him a period until the 28th of October to close the deal. After the court order, Twitter investors were concerned that the CEO would sell more TSLA stock to finance the deal. Hence, the EV company began to see its shares plunge. At press time, the automaker is down 2.36% to $217.17. The company has been amassing losses over the past year, declining almost 35% in the last twelve months.
As the acquisition efforts move faster, investors have concluded the final credit agreement, according to unnamed sources. At this stage, all needed is the signing of documentation which is one of the last processes before the money goes to Musk.
Mirae Asset Offers to Support Musk’s Acquisition Effort
Meanwhile, Mirae Asset Financial Group of South Korea has plans to financially support Elon Musk concerning the Twitter acquisition. A person familiar with the matter noted that the financial group wants to commit around 300 billion Korean won, worth $208million, to the buyout. The source added that Elon Musk and Mirae Asset would agree on the financing soon before the closing of the Twitter deal.
Twitter stock is currently up 0.09% to $52.83 in after-hours trading, less than $2 away from Musk’s offer of $54.20 per share. The social networking company has improved since the year began, adding over 22% since January. Also, it jumped 34.16% in the last three months and 25.40% over the past month.