Elon Musk secured additional funding to acquire Twitter, documents show | Twitter

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Elon Musk has secured additional funding to buy Twitter, according to financial filings released Wednesday, bringing the billionaire one step closer to closing the high-profile deal.

Tesla CEO says in regulatory filings he’s increased his personal financing of the purchase from $27.3 billion to $33.5 billion and secured an additional $6.25 billion in equity financing , thereby reducing the amount of debt the contractor would incur upon purchase by $44 billion.

The world’s richest man is also in talks with shareholders, including former Twitter CEO Jack Dorsey, for additional funding commitments to fund the deal, he said in the filing.

Musk initially took out a $12.5 billion margin loan against shares in his electric car maker Tesla to help fund his purchase of Twitter. But he cut it to $6.25 billion earlier this month after bringing in co-investors.

The latest filing comes after Musk said last week his bid to buy Twitter wouldn’t go ahead until the company proves that spam bots make up less than 5% of the total number. platform users, a move analysts suggest is meant to pressure Twitter into agreeing to a lower sale price.

Details of Musk’s funding plans were made public the day Twitter shareholders gathered for their regular meeting.

A vote on Musk’s plan to buy the social media platform was not on the agenda, but will take place at an undetermined date in the future.

Still, shareholders raising ballot proposals have frequently invoked the name of Tesla’s CEO.

Investors at the meeting pre-approved a proposal from the New York State Joint Retirement Fund that called for a report on Twitter’s policies and procedures regarding political contributions using corporate funds.

Two proposals put forward by conservative-leaning groups failed to garner enough votes to pass. One called for an audit of the company’s “civil rights and non-discrimination impacts” and called “‘anti-racism’ programs that seek to establish ‘racial/social equity'” as “deeply racist themselves”. The other asked for more information about the company’s lobbying activities.

Several proposals touched on the deep existential conflict being played out between Twitter users, employees and shareholders.

Twitter co-founder Jack Dorsey’s term as a board member expired on Wednesday. Investors re-elected Patrick Pichette, general partner at Inovia Capital, to the board of directors.

Investors also blocked the re-election of a Musk ally to the board, voting against Egon Durban, the co-head of private equity firm Silver Lake, who partnered with Musk over his dropped bid to take the company private. electric car manufacturer.

“Twitter’s board hasn’t embraced Elon Musk and his vision for Twitter. So it’s no surprise that his ally was removed from the board,” said Kim Forrest, chief communications officer. investments at Bokeh Capital Partners in Pittsburgh.

The vote on Durban’s role could signal shareholders’ skepticism of Musk’s plan or his willingness to pay for what he has offered, but investors are expected to approve the deal by an overwhelming majority.

Twitter’s board initially voted in favor of adopting a ‘poison pill’ that limited Musk’s ability to increase his stake in the company, but later voted unanimously to accept his offer redemption.

In April, Musk reached an agreement to buy Twitter at $54.20 per share. But Tesla’s CEO said in May the deal couldn’t move forward until the platform proved less than 5% of its users were fake or spam accounts.

The abrupt reversal makes little sense except as a tactic to scuttle or renegotiate a deal that is becoming increasingly costly for him, experts said last week. Having the discussions take place publicly, on Twitter no less, only adds to the chaos.

Experts say Musk cannot unilaterally suspend the deal. If Musks walks away, he could be liable for $1 billion in severance pay. Alternatively, Twitter could sue Musk to force him into the deal, though experts believe that is highly unlikely.

Even if shareholders approve the proposals, they won’t be binding, said Donna Hitscherich, a finance professor at Columbia Business School.

Twitter shares jumped around 6% to $39.15 in extended trading.

Musk could not immediately be reached to comment on the details of the regulatory finding.

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