Musk raises the proposed capital injection for the purchase of Twitter and abandons the margin loan

MADRID, 26 May. (EUROPA PRESS) -

Entrepreneur Elon Musk, founder and CEO of Tesla and SpaceX, has decided to modify the sources of financing with which he aspires to pay for the purchase of the social network Twitter for nearly 44,000 million dollars (41,089 million euros), according to the Wednesday after the close of the market the Securities and Exchange Commission of the United States (SEC, for its acronym in English).

The changes do not affect the price, but the way in which Musk aims to raise the amount necessary to take over the social network. Nor do they imply a reactivation of the offer, since the businessman announced days ago that it was paralyzed until Twitter demonstrated the real percentage of false accounts on the platform.

In this way, the capital contribution that Musk will make now is 33,500 million dollars (31,284 million euros), compared to the 27,250 million dollars (25,447 million euros) that he had previously proposed.

The increase in the capital contribution that Musk plans to make is due to the fact that he has allowed the margin loan contract that he had granted for a value of 6,250 million dollars (5,836 million euros) to expire. This coincides with a continued decline in Tesla shares over the past eight weeks.

This type of credit allows wealthy clients with a large number of shares in their portfolio to access cash without having to sell their shares. In these operations, the shares of said person are usually pledged, that is, used as collateral to prevent losses in the event of non-payment.

If those shares depreciate, the borrower has to pay cash, assign ownership of the shares offered as collateral or make other types of additional assets available to the entity.