Business Standard

Elon Musk needs 'massive loan' or big Tesla stock sale to buy Twitter

The purchase isn't straightforward, but Musk has several financing paths.

Elon Musk. Photo: Reuters
Premium

Elon Musk. Photo: Reuters

Devon Pendleton and Tom Maloney | Bloomberg
Even for the world’s richest person, $43 billion is a steep price.
 
Elon Musk’s proposed all-cash offer to buy Twitter Inc. represents about one-sixth of his $250.6 billion fortune. Yet the vast majority of that wealth is tied to his stake in Tesla Inc., the electric carmaker he co-founded that has surged in value over the past two years and lifted him to the top of the Bloomberg Billionaires Index.

The purchase isn’t straightforward, but Musk has several financing paths. One option is to sell his Tesla shares outright. Another is borrowing against them to stage a leveraged buyout, possibly with

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in