Twitter Shares Fall As Investors Await Musk Funding Details
1 mins read
Published on November 1, 2022
- Musk acquired Twitter for $44 Billion, but then tried to back out of his original offer
- It is not clear who all are Musk's backers, which has investors worried
- Musk's deposition has been delayed
Twitter Inc's shares retreated further from Elon Musk's offer price on Thursday as investors fretted over financing for the proposed $44-billion buyout of the social media firm against the backdrop of growing economic uncertainty.
Apollo Global Management Inc and Sixth Street Partners, which had been looking to provide financing for the deal, are no longer in talks with the billionaire entrepreneur, two sources familiar with the matter told Reuters.
Shares of the microblogging site were down marginally at $51.12, after rising 20% since Musk this week proposed to go ahead with the April bid of $54.20 per share to take Twitter private.
"There's still some uncertainty based on whether or not Elon can find the actual financing to do the deal," said Randy Frederick, managing director of trading and derivatives for the Schwab Center.
Major banks that committed to fund $12.5 billion, or about 28% of the deal, could be facing hefty losses as the swift pace of interest rate hikes has ratcheted up market volatility and dampened appetite for leveraged financing.
Musk has raised $15.4 billion by selling Tesla Inc's shares this year and is leaning on large investors for a chunk of the financing, leading to speculation over whether he will sell more of the electric-vehicle maker's stock to fund the deal.
"Financing will eventually end up going through one way or another. It is just a point of negotiating terms at this stage," said Robert Gilliland, managing director at Concenture Wealth Management.
Musk and Twitter agreed to postpone the billionaire's deposition scheduled for Thursday as they try to reach an agreement to end their litigation, a source told Reuters.
Tesla shares fell 2%.
(Reporting by Medha Singh, Bansari Mayur Kamdar and Amruta Khandekar in Bengaluru; Editing by Shounak Dasgupta)
Great Deals on Used CarsView All Used Cars
-19411 second ago
The fourth-generation Maruti Suzuki Swift is expected to launch in India in 2024 and the latest spy shots show more details on the upcoming offering.
-16898 second ago
Celebrating Ather Energy's 10th Anniversary, the 450 Apex is also expected to sport tweaked styling and new colours
-16633 second ago
The RV400 is priced at Rs 1.39 lakh and is available for sale on Flipkart
-14136 second ago
The double cab pick-up comes with a payload capacity of up to 760kg and will be joined by a chassis-cab variant in 2024.
-13731 second ago
Customers can access these services through the KwikFix app
-11229 second ago
Launched last year with single-channel and dual-channel ABS options, the motorcycle will now be offered only in the latter variant, priced at Rs. 1.31 lakh
14 hours ago
The 70 Series from Toyota was first launched in 1984, and the latest iteration combines retro styling with modern technology.
14 hours ago
New-gen Duster now sits on the CMF-B platform and is offered with turbo-petrol, bi-fuel and hybrid powertrain options.
14 hours ago
The updated Tesla Model 3 gets the “Active Hood” feature to reduce pedestrian injuries in the event of a collision
15 hours ago
The selection committee comprising members of the FIM, IRTA and Dorna Sports announced the decision to drop CryptoDATA RNF over repeated infractions and breaches.
11 days ago
A YouTuber from Vietnam recently shared videos and images of his fully functional Cybertruck replica made out of wood and caught the attention of Tesla co-founder and CEO, Elon Musk.
15 days ago
While company chief Elon Musk was unable to meet in person due to health reasons, he expressed his honour in having the Indian minister visit Tesla’s manufacturing unit
2 months ago
The Prime Minister took a tour of Tesla's factory, also taking a drive in a Tesla Model X
3 months ago
Vaibhav Taneja previously held the position of Chief Accounting Officer (CAO) at Tesla
5 months ago
Following a ‘fantastic’ meeting with Indian Prime Minister Narendra Modi, Musk said it is ‘quite likely’ the company will make a ‘significant investment’ in India.