Twitter is worth $13.316 billion based on its three-year revenue and profit score. But, how much was Twitter sold for? Let's see.
How Much Was Twitter Sold For?
Elon Musk completed the $44 billion transaction to take Twitter Inc (TWTR.N) private and acquired ownership of the big social media platform. Musk is investing about $44 billion, or $54.20 per share, on Twitter. When he first tried to buy Twitter in April, he made the same offer.
What Was Musk Financing Plan?
For the acquisition, Musk promised to contribute $46.5 billion in equity and debt financing, covering the $44 billion acquisition cost as well as the closing charges. Banks pledged to offer $13 billion in debt financing, including Morgan Stanley (MS.N) and Bank of America Corp. (BAC.N).
According to experts, banks made clear and binding pledges to the purchase, limiting their ability to back out even with the possibility of suffering significant losses.
Musk's $33.5 billion equity pledge includes his $9.6% ownership in Twitter, which is worth $4 billion, as well as the $7.1 billion he had raised from equity investors, including Saudi Prince Alwaleed bin Talal and co-founder of Oracle Corp. (ORCL.N ), Larry Ellison.
That had left Musk in need of an additional $22.4 billion of funds to cover the equity financing portion of the deal.
Since the co-backers were revealed, Apollo Global Management Inc (APO.N) and Sixth Street Partners have pulled their offers from the table.
From Musk's Own Pocket
Forbes estimates that Musk has a net worth of $222 billion, making him the richest person in the world, yet a significant chunk of his wealth is dependent on his ownership of Tesla and Space X.
After selling a portion of his ownership in Tesla through numerous deals in November and December of last year as well as in April and August, Musk reportedly had roughly $20 billion in cash.
To finalize the funding for the acquisition, Musk would have needed to raise an extra $2 billion to $3 billion.
Conclusion
This summer, Musk attempted to break the agreement, and Twitter sued him to force him to uphold his end of the bargain. The Twitter deal has had a difficult year. However, Musk has now acquired Twitter and is implementing the most significant improvements there.
Well, I believe now you get the answer to "How Much Was Twitter Sold For?"
