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Banks have began to ship $13 billion in money backing

Elon Musk’s

takeover of

Twitter Inc.,

TWTR 1.08%

based on folks aware of the matter, the newest signal the $44 billion deal for the social-media firm is on monitor to shut by the top of the week after months of twists and turns.

Mr. Musk late Tuesday despatched a so-called borrowing discover to the banks that agreed to offer him with the debt for the acquisition, one of many folks mentioned. That kicked off a course of that’s at present below manner by which banks will deposit funds they’re on the hook for into an escrow account after hammering out ultimate particulars of the debt contracts, the folks mentioned.

As soon as ultimate closing circumstances are met, the funds will likely be made out there for Mr. Musk to execute the transaction by the Friday deadline.

It signifies the deal is on monitor to shut, after Mr. Musk visited Twitter’s San Francisco workplace Wednesday. “Getting into Twitter HQ – let that sink in!” Mr. Musk tweeted, together with a video of himself strolling into Twitter’s headquarters carrying a white basin.

Twitter informed staff in an inside message that they might hear immediately from Mr. Musk on Friday, based on an inside word reviewed by The Wall Avenue Journal.

The billionaire additionally modified the bio description on his Twitter profile to “Chief Twit” and added his location as “Twitter HQ.”

Twitter will turn out to be a personal firm if Elon Musk’s $44 billion takeover bid is accredited. The transfer would permit Musk to make adjustments to the location. WSJ’s Dan Gallagher explains Musk’s proposed adjustments and the challenges he may face enacting them. Illustration: Jordan Kranse

Funding notices are sometimes despatched three to 5 days upfront of when the cash is required. In regular circumstances, such paperwork are a part of the mundane deal-closing procedures dealt with by back-office staffers that obtain little to no point out. However after Mr. Musk spent months attempting to again out of the deal to purchase Twitter earlier than flip-flopping and agreeing to undergo with it earlier this month, Wall Avenue and Silicon Valley alike have been on excessive alert for proof that he’ll really comply with by way of.

If Mr. Musk proceeds to shut the deal because the indicators at present counsel, it might carry to an finish a six-month-long company drama and Twitter would stop to be publicly traded, with its present shareholders receiving $54.20 a share. The outspoken billionaire entrepreneur is predicted to take the influential platform in a brand new route, having floated concepts for altering Twitter, together with by limiting content material moderation and ushering in a brand new enterprise mannequin.

As just lately as earlier this month, Mr. Musk was slated to face Twitter in a Delaware courtroom over the stalled deal. He had argued the corporate misled him about its enterprise together with the quantity of spam on its platform. Twitter countered that he was searching for an out after a market downturn gave him chilly toes.

im 652737?width=700&height=466

Twitter has been on the middle of a six-month-long company drama that seems to be near an finish.


Justin Sullivan/Getty Photographs

Then, within the days earlier than he was to take a seat for a deposition, Mr. Musk modified his place once more and proposed closing the deal on the unique value. The choose presiding over the authorized conflict postponed a trial scheduled to start out Oct. 17 and gave Mr. Musk till Oct. 28 to shut the deal.

Chancellor Kathaleen McCormick mentioned if the deal doesn’t shut by that date, the events ought to contact her to schedule a November trial.

The closing of the deal received’t be the top of the story for the banks that agreed to assist fund it, together with

Morgan Stanley,

MS 0.50%

Financial institution of America Corp.

BAC 0.88%



BCS -0.14%

PLC. They’re more likely to maintain on to the debt somewhat than promote it to third-party traders, as is the norm in such offers, till the brand new 12 months or later, folks aware of the matter have mentioned. These lenders may face upward of $500 million in losses in the event that they tried to promote Twitter’s debt at present market ranges, as many traders are frightened a few recession and curbing new publicity to dangerous bonds and loans.

—Alexa Corse and Lauren Thomas contributed to this text.

Write to Laura Cooper at, Alexander Saeedy at and Cara Lombardo at

Copyright ©2022 Dow Jones & Firm, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8


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