- A group of 19 investors have committed $7.14 billion in new financing to boost the equity portion of Tesla, Inc (NASDAQ:TSLA) CEO Elon Musk's offer to buy Twitter, Inc (NYSE:TWTR).
- The new financing commitments reduce Musk's $12.5-billion margin loan to $6.25 billion, the Wall Street Journal reports Thursday.
- Musk looks to finance the takeover with $27.25 billion in equity and cash.
- The investors include Sequoia Capital, Oracle Corporation (NYSE:ORCL) co-founder Larry Ellison and VyCapital.
- Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud of Saudi Arabia has also earmarked 35 million shares on Twitter.
- Musk looks to bring on more current Twitter shareholders, including co-founder Jack Dorsey.
- Recently, Musk agreed to buy Twitter for $44 billion and take it private, a platform where he has promised to return free speech and debate.
- Musk looks to cut jobs and costs at Twitter to boost its bottom line. He also aimed to monetize the platform and boost cash flow, including possible subscription services to drive recurring revenue.
- TWTR Price Action: TWTR shares traded higher by 1.92% at $50 in the premarket session Thursday.
Photo courtesy of Tesla.
