Business magnate Elon Musk has notified his co-investors on closing the $44 billion acquisition of Twitter by Friday. A source familiar with the matter said that equity investors such as Sequoia Capital and Qatar Investment Authority have received the financial commitment paperwork from Musk's lawyers.
The move is the clearest sign that the Tesla leader plans to adhere to the deadline of a Delaware court judge's order to complete the transaction by the mentioned date. The banks committed to funding Musk's buyout of the social media platform are in the process of signing the necessary documents and have finished collating the final debt financing and credit agreements.
Moreover, Musk also pledged on closing the deal with bankers helping to fund on a video conference call on Monday. Twitter shares spiked and were trading up 3% at $52.95, which was closer to the offer price of $54.20. Musk has claimed to provide an equity amount of $46.5 billion and debt financing for the $44 billion acquisition, which includes the closing costs.
Financial institutes such as Bank of America Corp and Morgan Stanley have committed to supporting the deal by providing $13 billion of debt financing. The banks are expected to receive one of the last formalities, i.e. a borrowing notice on Tuesday, and the cash is expected to be held in legal agreement on Thursday, the source said.
Equity investors such as Saudi Prince Alwaleed bin Talal and Oracle Corp co-founder Larry Ellison will pitch in with $7.1 billion, putting a closure to months of speculation of Musk abandoning the takeover.
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