Elon Musk has raised $33.5 billion to cover the direct amount of the entrepreneur and his associates for the takeover Twitter. This will further reduce the amount borrowed from banks. After the close of Wall Street, the announcement sent the stock of the blue bird group soaring after it was made. The title gained more than 5% at 11:01 GMT.
Initial subscriptions for 25.5 billion credits were made by Tesla's CEO. According to a Wednesday filing with the US Securities and Exchange Authority, it reduced those borrowings by $13 billion. This significantly eased its financial burden.
Many Twitter shareholders had committed their shares to the operation at the beginning of May and would remain a minority in the capital after the company was delisted. Their titles were valued, which reduced Elon Musk's available funds.
SpaceX founder, Elon Musk, announced Wednesday that he received new direct commitments. This allowed him to reduce his loan amount for the acquisition by 6.25 billion. He didn't specify whether the amount was a part of his personal assets or if other investors joined him. He said that he was currently in talks with Jack Dorsey (co-founder) to get their support and cash.
"Elon Musk is just changing the funding structure. This is a significant step forward. It relieves some of the debt pressure," said expert Dan Ives from Wedbush via Twitter.
Analysts were concerned about the $12.5 billion in loans that weren't needed because they were loans backed with Tesla securities. The market was dissatisfied that they had created a connection with Tesla securities.
The group has been enduring the many twists of the case since the April revelations about Elon Musk's stake at the capital of Twitter. Musk has been a billionaire and has been blowing hot. He announced last week that he would suspend the operation to make sure "that spamming and fake accounts really do not represent less than 5%" , before reiterating the commitment to purchase the social network.
Elon Musk, who boasts more than 95,000,000 subscribers to his profile, said he wanted to make the platform a bastion for freedom of expression. This vision is similar to that of the American Right, which believes it is censored through social networks.
