“Nobody knows - I don’t know anyway - what their commitment is,” Kaiser said. Kaiser, an adjunct finance professor at the University of Pennsylvania’s Wharton School. Musk’s equity commitments - including $1 billion from Musk’s friend and Oracle co-founder Larry Ellison - are on shakier ground if any in that diverse group of backers have changed their minds, said Kevin Several other investors didn’t respond to requests for comment on whether they were still chipping in. Qatar’s sovereign wealth fund declined to comment this week on the $375 million its subsidiary pledged in May. But some investors may be skittish about staying in given the market changes and Musk’s repeated accusations against Twitter about the number of bots on the platform. Ives estimates they had agreed to $15 billion to $16 billion. Investors who would get equity in Twitter are supposed to kick in billions. “The agreements seem to be very strong, but I think the banks have their lawyers pulling all-nighters trying to get them out of it if they can.” EQUITY INVESTORS “The banks would be really happy to not to have to take the risk of funding these loans,” said Erik Gordon, a law and business professor at the University of Michigan. READ MORE: Elon Musk says he is ready to buy Twitter again, at original $44 billion price Banks could be on the hook to make loans themselves. The stock market has tumbled, inflation is high, and interest rates are up as the Federal Reserve tries to slow the economy.īanks would sell the debt to institutional investors, but there’s not much appetite now to take part in takeovers that saddle companies with big debts. But the debt market has changed dramatically since April. The banks are “essentially cemented” to the deal by solid contracts, Wedbush analyst Dan Ives said. “Counsel for the debt financing parties has advised that each of their clients is prepared to honor its obligations.” “No such failure has occurred to date,” the motion said. In Thursday’s court motion, Musk alleges that Twitter doesn’t want to set the lawsuit aside because of a “baseless” fear that Musk could fail to get the bank financing. But with so much at play, here’s what could throw the deal off track, again: BANK FINANCINGĪ group of banks, including Morgan Stanley and Bank of America, signed on to loan $12.5 billion of the money Musk needs for the deal. It’s still possible the sale could close. In the end, a judge agreed to give Musk more time to close the deal but said the trial will go ahead in November if he doesn’t. READ MORE: Twitter says it wants trial against Elon Musk to proceedīut Twitter’s attorneys said it’s Musk who is holding everything up, and his effort to put the trial on hold “is an invitation to further mischief and delay.” They sought to delay an upcoming trial on Twitter’s lawsuit that could force him to complete the deal. The fighting continued Thursday, when Musk’s attorneys said Twitter is refusing to accept his revived bid to buy the company. The erratic billionaire is on the hook for the rest. But after months of tweetstorms and legal barbs, there are scars and suspicions on both sides.Įxperts say that behind the scenes, banks could be scrambling to find buyers for $12.5 billion in debt from the deal, and Musk is trying to hold together a group of equity investors that is pitching in billions more. If the squabbling ever stops over Elon Musk’s renewed bid to buy Twitter, experts say he still faces a huge obstacle to closing the $44 billion deal: Keeping his financing in place.Įarlier this week, Musk reversed course and said he’d go through with acquiring the social media company under the same terms he agreed to in April.
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