The involved Wall Street banks, led by Morgan Stanley, are also figuring out the procedures required to complete funding for approximately $13 billion in loan commitments. Another individual with knowledge of the situation reported that one of the banks has informed its personnel to anticipate a borrowing notice from Musk on Tuesday.
Morgan Stanley and Twitter representatives both declined to comment. An inquiry for comment was not immediately answered by a Musk spokeswoman.
Uncertain factors may have contributed to the Twitter and Musk agreement. Early in October, their discussions came to a halt due to Musk’s assertion that his offer was conditional on receiving $13 billion in debt funding, despite the fact that banks had previously agreed to deliver the debt through an April commitment letter.
Musk Complaints Another issue was that, according to Musk, the platform’s executives deceived him and other investors about the quantity of spam and automated accounts. Bloomberg News stated that Musk had been trying to reserve his rights to pursue a fraud action.
Musk expressed his excitement on the Twitter scenario during a call to discuss Tesla Inc.’s earnings on Wednesday. The social media company, he said, has “kind of languished for a long time” but has “great potential.” Additionally, he said that he was clearly overpaying for it at $54.20 per share.
The announcement of the deal in April set off a series of unpredictable events that would end with the transaction concluding. Previously, Musk attempted to back out of his deal, which prompted Twitter to file a lawsuit to make him carry through with the deal.
In order to give the parties additional time to finalise the issues, the judge postponed the trial that was originally scheduled for October 17. In advance of the transaction completion, Twitter locked the employee equity award accounts earlier this week.
Force reductions There may not be much serenity for long. According to a person familiar with the situation, Musk is reportedly telling prospective investors that he expects to treble revenue within three years while laying off 75% of Twitter’s current personnel of approximately 7,500.
