The richest man in the world and the CEO of Tesla and SpaceX, offered to buy Twitter on April 14th. Twitter is a social media company, and it is worth about $35.6 billion as of 4/21. Musk offered $46.5 billion to buy the company, which is over $10 billion more than what Twitter is actually worth right now. Musk has a net worth of $281 billion as of 4/21 according to Forbes, so he can easily afford the company. But, Musk will be taking loans from Morgan Stanley Senior Funding worth $25.5 billion, and he will pay another $21 billion by himself. Musk already owns a 9% stake in Twitter. The reason Musk is taking loans is because he can’t just pay the money, since most of his money is in Tesla stock. Twitter’s board of directors announced it is implementing a “poison pill”, which would allow some shareholders to buy extra stock if Musk ever holds a stake of 15% or more. This would dilute the value of Musk’s shares.
Source: https://www.theverge.com/2022/4/21/23033445/elon-musk-twitter-bank-debt-commitment-letter
