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Elon Musk could complete a $44 billion Twitter takeover on Friday

on Oct 27, 2022
Updated: Nov 19, 2022
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  • Elon Musk close to completing $44 billion Twitter takeover
  • Banks start sending $13 billion in cash supporting Musk’s bid
  • Twitter shareholders are to be compensated $54.2 per share

Elon Musk is nearing his $44 billion takeover of Twitter after banks started sending $13 billion in cash to support his bid. According to people familiar with the matter, a deal could be closed by Friday, following weeks of back and forth.

Musk sent a borrowing notice to banks for capital to buy Twitter

One of the sources indicated that Musk had sent a borrowing notice on Tuesday to financial institutions that had agreed to give him the capital to make the acquisition. The people said that this kicked off the process through which the funds will be deposited into an escrow account subject to agreeing on the final terms of the debt agreement.

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The funds will be available after closing terms are met, and Musk could finalize the deal by the target date on Friday.

Additionally, Musk’s visit to Twitter’s San Francisco headquarters on Wednesday is also an indication that a deal could be reached soon. Musk tweeted a video of himself visiting the office, captioning it, “Entering Twitter HQ- let that sink in!”

As per an internal note seen by The Wall Street Journal, the company informed employers that they would directly hear from Musk this Friday.

Usually, funding notices are sent three to five days earlier whenever cash is required. Over the past few months, Musk has been trying to back off the deal to purchase Twitter. But at the beginning of this month, he changed his mind and agreed to follow through with the deal. As a result, Silicon Valley and Wall Street have been keen to see if he will follow through.

Twitter shareholders are to be compensated $54.2 per share

After Musk completes the acquisition, Twitter will stop being publicly traded, and current stockholders will be compensated $54.2 per share. Musk is expected to steer Twitter in a new direction with plans to limit content moderation and introduce a new business strategy.

Twitter had taken Musk to court over the stuck deal, but he claimed that the company had misled him regarding the business and the number of spam accounts. However, Twitter responded that Musk was looking for an out because the market downturn gave him cold feet.