According to reports, Elon Musk has given notice to co-investors who agreed to participate in the $44 billion acquisition of Twitter Inc that the deal will be completed by Friday, as per his notification to them.
In addition to the requisite paperwork for the financing commitment, Mr. Musk’s lawyers have also delivered the paperwork to a number of equity investors, such as Sequoia Capital, Binance, Qatar Investment Authority and others.
In this way, Mr. Musk is giving his clearest indication yet that his intention is to comply with the deadline of Friday set by an upper Delaware court judge for getting the transaction completed.
Bloomberg News reported that the banks that have committed to funding Elon Musk’s buyout of Twitter have finished putting together the final debt financing agreement and are in the process of signing the documents required to close the deal.
The report indicates that Musk assured bankers who are helping fund the deal that he was committed to closing on the deal during a video conference call with the bankers on Monday.
Neither Twitter nor Mr. Musk’s lawyers were able to provide comments at the time of this writing.
In response to this news, Twitter shares rose to $52.95 on Tuesday, a 3% increase, closer to Musk’s $54.20 offer price than the previous day.
During the proposal process, Mr. Musk has pledged to contribute $46.5 billion in debt and equity financing for the acquisition, which covers the price tag of $44 billion and other closing costs associated with the acquisition.
A number of banks are backing the deal, including Morgan Stanley and Bank of America Corp, which are committing $13 billion.
In total, $7.1 billion is expected to be raised from equity investors, including Oracle Corp co-founder Larry Ellison and Saudi Prince Alwaleed bin Talal.
Mr. Musk, as a defender of free speech, has criticized Twitter’s approach to monitoring violent or hateful content, which led to many prominent conservatives being banned.
With the closing of the deal, months of speculation that the volatile entrepreneur would abandon the takeover will come to an end.