FOX Business host Stuart Varney talks about the upcoming Twitter shareholder meeting during the opening bell.
Tesla CEO Elon Musk has made an adjustment to his funding plan for his $ 44 billion Twitter purchase proposal.
The review would reduce the $ 6.25 billion loan package Musk had previously lined up for the Twitter purchase, according to a regulatory statement.
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This means that Musk will have to raise that amount in stock commitments instead of debt. That brings the share capital of the deal to $ 33.5 billion, more than the $ 27.25 billion revealed three weeks ago.
The move prompted investors to expect Musk to still intend to make the deal amid concerns over the number of fake Twitter accounts.
Elon Musk, founder of SpaceX and CEO of Tesla Inc. (Liesa Johannssen-Koppitz / Bloomberg via Getty Images / Getty Images)
Twitter shares rose 5.5% to $ 39.22 in the aftermarket, based on a 3.9% increase during regular trading.
Wednesday’s announcement came on the same day that Twitter held its annual shareholders’ meeting.
Shareholders did not directly address the Musk agreement: this vote will be scheduled for an as yet undetermined future date, should the agreement continue.
Twitter CEO Parag Agrawal declined to offer an update on the status of Musk’s bid, citing “regulatory and other reasons.”
Parag Agrawal, CEO of Twitter (Photo by ROBYN BECK / AFP via Getty Images / Getty Images)
The presentation to the Securities and Exchange Commission did not go into much detail about where Musk will get the additional capital, but stressed that he is still trying to persuade his friend and former Twitter CEO Jack Dorsey to incorporate his shares into the package. financing.
Ticker Security Last Change Change% TWTR TWITTER INC. 37.16 +1.40 + 3.91%
Dorsey, also a co-founder of Twitter, currently has a 2.4% stake worth about $ 700 million, according to the closing price of the company’s shares on Wednesday, according to FactSet Research. Musk owns a nearly 9.6% stake worth $ 2.7 billion.
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Wednesday was also Dorsey’s last day as a Twitter board member, a date set when he resigned as CEO last November.
The Associated Press contributed to this report.