Elon Musk on Wednesday pledged an additional $6.25 billion in equity financing to fund the $44-billion offer for Twitter Inc, reducing the billionaire's margin loan against his Tesla Inc shares to zero.
Musk in working to complete the deal with Twitter
- Musk said on May 25th, he was also in talks with shareholders, including Jack Dorsey, for additional financing commitments to fund the deal.
- Twitter shares jumped around 6% to $39.15 in extended trading.
- He initially took a $12.5-billion margin loan, but earlier this month reduced it to $6.25 billion after bringing in co-investors.
- Musk had lined up $46.5 billion in debt and equity financing to buy Twitter, with Musk himself committing $33.5 billion.
After Musk's offer, Twitter's board initially voted to adopt a poison pill that limited his ability to raise his stake, but later voted unanimously to accept his buyout offer.