Elon Musk sold Tesla shares to take Acquisitions on Twitter, isn`t Worth it?
Elon Musk has sold 4.4 million shares of Tesla stock worth roughly $4 billion (€3.7 billion), most likely to help fund his purchase of Twitter.
Musk reported the sale in a filing with the Securities and Exchange Commission on Thursday. The shares were sold over the past few days, at prices ranging from $872.02 (€824) to $999.13 (€945).
The world`s richest man, who is the CEO of Tesla, tweeted that he doesn`t plan any further sales of the company’s shares. Most of the sales took place on Tuesday, with Tesla shares falling 12%, down sharply in a single day. Analysts said Tesla’s investors were afraid that Musk would be distracted by Twitter and less involved in running an electric car company.
Twitter agreed on Monday that Musk would buy it for $ 44 billion. Musk appeared to have borrowed up to $ 25.5 billion from various banks to pay for Twitter’s acquisition, but the sale of shares could fund some of it. Mask Twitter transaction not yet approved
The deal to buy Twitter for $ 54.20 per share was announced earlier this week and is expected to close later this year. But before the deal is completed, shareholders and regulators will have to approve it. If Musk fails to secure enough funding to complete his deal to buy Twitter, he would have to pay the social media platform a termination fee of $1 billion (€945 million), according to a regulatory filing out Tuesday.
Read more : Some Countries Officially Ban Bitcoin & Crypto Currency
Read more : Economic Independence is an Absolute State Obligation.
Read more : Inflation Affects Consumers More Than Lockdown
Read more : Now is the time for house prices to the moon
Read more : New Drew League Deal With Adidas
The same filing revealed Twitter would owe Musk a $1 billion breakup fee if it accepts a competing offer, or if shareholders reject the deal. So far though, few hurdles are expected, despite objections from some of Twitter`s employees and from users who worry about Musk`s stance on free speech and what it might mean for harassment and hate speech on the platform.
