Elon Musk commits more cash to Twitter deal, sending Twitter stock higher and Tesla shares lower
Tesla Inc. (TSLA) Chief Executive Elon Musk increased the amount of cash he is committing to acquiring Twitter Inc. (TWTR), according to a Wednesday filing with the Securities and Exchange Commission. Musk increased his commitment by $6.25 billion, with the rest funded by debt financing, according to the filing. Margin-loan commitments for $12.5 billion expired, with banks committing to still provide half that amount and Musk promising the rest. Musk had previously stated that the Twitter deal was "on hold," and also promised he would not sell more Tesla stock after reaping nearly $4 billion from sales in April. The filing also stated that Musk continues to negotiate with Twitter shareholders, including cofounder Jack Dorsey, in an attempt to convince them to remain as investors instead of cashing out. Twitter stock gained more than 5% in after-hours trading, while Tesla shares declined more than 1%.
-Jeremy C. Owens
(END) Dow Jones Newswires
May 25, 2022 17:08 ET (21:08 GMT)
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