Elon Musk Tells Bankers Twitter Deal to Close on Friday: Report
According to people familiar with the matter, Musk promised to complete the transaction this week during a video conference with his financiers.
A group of seven banks, led by Morgan Stanley, has committed $13 billion of debt financing for Musk’s Twitter deal, which was on the ropes for months and headed to trial before the celebrity billionaire gave in and offered to go through with it earlier this month.
Bloomberg‘s sources said the lenders have drawn up the final credit agreement and are in the process of signing the documentation, after which they’ll hand the cash over to Musk.
The banks expect to receive a borrowing notice from Musk, one of the last remaining formalities, on Tuesday. In addition, the cash is expected to be held in escrow on Thursday, sources said.
It looks like the Musk-Twitter transaction will go right down to the wire, as things involving the eccentric entrepreneur often do. Both parties are currently rushing to close the deal by the October 28 deadline issued by the Delaware Court of Chancery, with a trial hanging over their heads.
A report from last week indicated Musk is gearing up to take over Twitter and plans to put jobs at the company on the chopping block by the thousands. Musk will reportedly cut Twitter’s workforce, which currently comprises about 7,500 employees, by a whopping 75% after completing the acquisition.
During the call, Musk reportedly also promised his lenders that he will help market the debt to money managers after the deal goes through.