Elon Musk may soon need to use more of his own money than he had anticipated to complete the acquisition of Twitter, and insiders tell The Post that he may already be in a rush to raise money.
According to The newspaper at the time, when Musk first made a bid to purchase Twitter in April, he planned to contribute $10 billion to $15 billion of his own money, which includes $4 billion in shares he had already bought, to the site’s $44 billion overall price.
According to public filings, the businessman recently sold Tesla shares to raise nearly $15.5 billion in cash. Analysts predict that he may either sell the $40 billion in shares he now holds or borrow against them to raise the additional billions.
Musk claimed in August that he had no plans to sell any additional Tesla shares; yet, since news of Musk’s most recent attempt to purchase Twitter leaked on Tuesday, the price of the company’s shares has fallen by around 6%.
In a court filing on Thursday afternoon, Musk unilaterally asked for a stay of the litigation, stating that he anticipated the purchase to close on October 28. Late on Thursday, the court changed the trial’s opening date from October 17 to October 28.
Analysts believe that since Musk is unable to sell Tesla shares before to the company’s Oct. 19 earnings report, the Oct. 28 date may afford him the opportunity to do so.
Seven banks, led by Morgan Stanley, have committed to provide Musk $12.5 billion in loan funding. Even though they stand to suffer significant losses on the loans, the banks are virtually certainly unable to cancel them, according to analysts watching the case.
Requests for response from both Musk and Twitter went unanswered.