Domain Money founder and CEO Adam Dell gives an idea of crypto regulation, and Elon Musk is researching a tender offer on Twitter.
Elon Musk registered three companies in Delaware under the name “X Holdings” to support his offer to buy Twitter and make the social media giant private.
Ticker Security Last Modified Change% TWTR TWITTER INC. 48.93 +1.85 + 3.93%
According to a submission to the Securities and Exchange Commission on Wednesday, X Holdings I will serve as a parent company monitoring a potential transaction, while X Holdings II will merge with Twitter and be used to buy its common shares outstanding. A separate SEC dossier adds that X Holdings III will be used to help finance the transaction.
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Musk is investigating whether to launch a tender to acquire all outstanding shares of Twitter’s common stock, citing a lack of response on board to his $ 54.20 share offer.
Musk says he has received commitments of approximately $ 46.5 billion to help fund a potential deal, including about $ 21 billion in equity financing and about $ 25.5 billion in debt financing through Morgan Stanley Senior Funding and other companies, including Bank of America, Mizuho Bank, Barclays, MUFG, Société Générale and BNP Paribas.
Twitter Headquarters in San Francisco, October 27, 2021 (Tayfun Coskun / Anadolu Agency via Getty Images / Getty Images)
Twitter told FOX Business on Thursday that it had received an updated, non-binding offer from Musk, adding that it “is committed to conducting a careful, comprehensive and deliberate review to determine the course of action it believes is in the best interests of of the company and all shareholders on Twitter. “
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Musk that has a 9.2% share on Twitter, he was a sharp critic of the platform and its CEO, Parag Agraval, and recently questioned whether the company strictly adheres to the principles of freedom of speech.
Although it was originally Musk invited to join the Twitter boardhe later rejected the offer. As part of joining the board, Musk could not own more than 14.9% of Twitter’s shares while on board or 90 days later. Musk’s term on board would expire at the annual Twitter meeting in 2024.
Tesla CEO Elon Musk during a tour of the factory of the future foundry of Tesla Gigafactory on August 13, 2021 in Grünheide near Berlin, Germany. (Patrick Pleul – Pool / Getty Images / Getty Images)
Following the announcement of Musk’s $ 43 billion offer, Twitter adopted a plan with a limited duration of shareholders’ rights, commonly referred to as poison pillto prevent him or any other legal entity or group from acquiring actual ownership of 15% or more of the ordinary shares of Twitter in circulation in a transaction not approved by the Board. The plan expires on April 14, 2023.
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It is unclear whether X Holdings could be used to combine other Musk, SpaceX, Tesla, Neuralink and The Boring Company.
Ticker Security Last Modified Change% TSLA TESLA INC. 1,005.05 -3.73 -0.37%
In 2012, Musk expressed interest in setting up a holding company to own shares in both Tesla and SpaceX. In 2020, Tesla investor Dave Lee proposed the creation of a holding company called X, which Musk said was a “good idea.” Musk also owns the X.com domain, an online payment company that merges with PayPal.
Musk recently told TED’s Chris Anderson that combining everything in one company would be “difficult.”
“Telsa is a publicly traded company and the investment base of Tesla and SpaceX, and certainly Boring Company and Neuralink are quite different,” Musk said. “It’s not that easy to combine these things.”
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