Elon Musk Is One Step Closer to Owning Twitter
Out. Let's get to Elon Musk because I think it's increasingly likely that this guy gets Twitter as much as it's driving some people in certain circles quite crazy. I detailed yesterday. I went through the SEC filing and I looked at what the actual financing looked like. There is a new development I'm going to get to that just momentarily because it looks like he's creating a holding company that could apparently be for maybe three companies. Anyway, let's talk about the money. He's got 25 and a half $1 billion from banks, led by Morgan Stanley, so Morgan Stanley, who is his adviser, investment banker in this. And they've gone out and worked with other banks to get him the financing 25 and half $1 billion lined up from the banks. Now, part of that is a margin loan against his shares of Tesla, 12 and a half $1 billion. Margin loan against Tesla don't forget Tesla has just been killing and earnings of 81% the other day. Not entirely clear whether that upside can continue only because of the supply chain problems that have been going on. But again, Tesla just really, really doing well proving, I would say once again, the brilliance, the brilliance of Elon Musk. $21 billion is going to come out of his own pocket. He's shelling out 21 billion of his own money for Twitter. This is how much he cares about this project, which makes sense. You look at some of the other things that he's been in and whether it be the EV industry, which has been obviously important to him, whether it's the SpaceX, another industry, clearly clearly very important. In his view, it is important to own Twitter because this is otherwise threatening in his view to democracy. He's described Twitter and did this the other day on a TED Talk as effectively the town square. And so he wants to edge on the side of allowing a lot of speech, a lot of diverse speech as opposed to immediately shutting it down and you know where I stand on that. So I think he's got a really good shot at getting this company. The flip side would be does somebody else say, wait a second, we just don't want him to have it. And so we're going to partner up and get all the money we can and make this absolutely impossible for him to take Twitter out.