The billionaire won't face the pressure of a margin call. But the move does raise questions about how he'll replace the funding amid a broad market downturn.
lon Musk will drop one of the riskier components behind his $44 billion bid for Twitter, a move you can read as a smart one given the single direction markets have moved over the past few weeks: down, down, down.
If Musk had taken the margin loan, he would’ve secured it with his Tesla stock, some $31.25 billion based on the loan’s terms. With Tesla stock falling, he was in the position of needing more Tesla shares to cover the loan. Margin loans are a gamble in the best of times.
As with everything Musk-Twitter, there are complications to this turn of events. Foremost, where will he get the $6.5 billion in equity to replace the margin loan?
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Elon Musk, Alphabet, & Joe Biden (USA) Just A Few Investing Billions Into Carbon RemovalOne costly but effective solution is carbon removal technology, which many companies and federal initiatives
Les mer »
Breakingviews - Snap! Elon Musk has another Twitter excuseSnap could be Twitter’s raven. The disappearing-message app abruptly slashed its second-quarter forecasts, sending its shares spiraling some 40%. That’s an ominous sign for Twitter. Elon Musk has an additional reason to bail on buying the social media network.
Les mer »
Elon Musk says he doesn't use flight attendants; SpaceX president defends him over sexual assault claimSpaceX President Gwynne Shotwell said she's worked with Elon Musk for two decades and has not seen anything resembling the sexual misconduct claims against him
Les mer »
Twitter is working toward 'closing the transaction process' with Elon Musk | EngadgetTwitter’s annual shareholder meeting did little to resolve the uncertainty surrounding Elon Musk’s impending acquisition of the company..
Les mer »