If the squabbling ever stops over Elon Musk’s renewed bid to buy Twitter, experts say he still faces a huge obstacle to closing the $44 billion deal: Keeping his financing in place.
The fighting continued Thursday, when Musk's attorneys said Twitter is refusing to accept his revived bid to buy the company. They sought to delay an upcoming trial on Twitter's lawsuit that could force him to complete the deal.
Musk is even more on the hook to complete the deal than he was in April because he’s now made the commitment to a judge, not just Twitter, that he has the financing and just needs more time, said Zohar Goshen, a law professor at Columbia University. The banks are “essentially cemented” to the deal by solid contracts, Wedbush analyst Dan Ives said. But the debt market has changed dramatically since April. The stock market has tumbled, inflation is high, and interest rates are up as the Federal Reserve tries to slow the economy.
Elon Musk announced Thursday morning that he wants to buy Twitter. What would his purchase of the social media platform mean for our society? And what does it say about the growing power and influence of the billionaire class in our world?Investors who would get equity in Twitter are supposed to kick in billions. Ives estimates they had agreed to $15 billion to $16 billion.
“Nobody knows — I don’t know anyway — what their commitment is,” Kaiser said. “So are they able to back out? Because if they’re able to back out, he is on the hook.”Musk, the world's richest person with a net worth of $231 billion according to Forbes, has to kick in his own money, but just how much depends on how many equity investors stay in.
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