Twitter will take on significant amounts of debt as part of its deal to go private, exposing the company to rising interest rates
Mr. Musk may pay the margin loan out of his own account, or Twitter may use cash from the business to cover the interest expense. Twitter and Mr. Musk didn’t immediately respond to requests for comment. Morgan Stanley, Bank of America and Barclays declined to comment. MUFG didn’t immediately respond to a request for comment.
At present, Twitter has a little more than $5 billion in debt, mostly in the form of low-interest convertible bonds and unsecured debt, according to a recent offering memorandum. If shareholders agree to take Twitter private, the company will need to pay back all of its existing debt before this new debt is added to its books, analysts said. The company’s bond prices have rallied on news of Mr. Musk’s planned buyout to around 102 cents on the dollar.
Twitter has been striving to build out its advertising revenue under CEO Parag Agrawal, but it is unclear if that vision will continue.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
UPDATE: Elon Musk Acquires Twitter After Board Accepts Buyout Offer; Wants 'To Make Twitter Better'The Twitter board Monday voted to accept a takeover offer from Tesla CEO Elon Musk in a deal at $46.5 billion.
Baca lebih lajut »
Twitter plans to accept Elon Musk's $43 billion buyout offerTwitter's board is reportedly planning to accept Elon Musk's $43 billion buyout offer as early as Monday of this week.
Baca lebih lajut »
Twitter Accepts Elon Musk's Buyout DealThe announcement ends a weeks-long saga Musk kicked off when he offered to buy the company at $54.20 per share, his “best and final.”
Baca lebih lajut »
Reports: Twitter, Elon Musk Buyout Talks Continue Early Monday MorningTwitter’s board and Tesla CEO Elon Musk negotiated into the early hours Monday over his bid to buy the social media platform, The New York Times reported.
Baca lebih lajut »
Twitter Jumps Over 3% Amid Reports That It Will Accept Elon Musk’s Buyout OfferShares of Twitter added to recent gains and jumped over 3% amid reports that the social media company is in advanced talks to sell itself to Tesla billionaire Elon Musk.
Baca lebih lajut »