Elon Has Secured Equity and Debt for $46.5 Billion for Twitter

Musk announced Thursday morning he has $21 billion in cash equity from himself and other co-investors to make a $46.5 billion bid for Twitter and Elon arranged $25.5 billion of committed debt financing through Morgan Stanley. The debt is loans against Twitter and Tesla.

Musk can make a tender offer conditioned on Twitter removing the poison pill.

There have been past takeovers of companies that had poison pills. In 2006, Pilgrim’s Pride will acquire all of the outstanding shares of Gold Kist common stock for $21.00 per share in cash. Gold Kist had put in a poison pill but Pilgrim’s Pride succeeded in taking over anyway.

Tender offers direct to shareholders and proxy battles can be used to takeover a company even if the company has taken poison pill measures.

The people currently running Twitter are incompetent. Elon will be able to takeover and increase the revenues of Twitter and grow it into the top or at least a top five social media site. Twitter is currently ranked about 20th in active users for social media sites.

By 2023, Elon will have 5-10 million users of Starlink. This will be up from 1 million at the end of this year. Elon will have 8 million Tesla customers which will be up from 2.3 million today. He will have acquired Twitter and it will have 400+ million active users. This will be up from 215 million today.

By 2026, Elon will have 100 million users of Starlink and 60-100 million Tesla customers. The future Twitter with short video will have over 1 billion users.

Written by Brian Wang, Nextbigfuture (Brian has shares of Tesla and Twitter)