Twitter shares jumped around 6% to $39.15 in extended trading after Elon Musk said he is working on a deal to buy the company.
The disclosure made in a regulatory filing yesterday signaled Musk is working to complete the deal. Twitter’s board initially voted to adopt a poison pill that limited his ability to raise his stake, but later voted unanimously to accept his buyout offer.
Elon Musk’s $46.5 billion financing package would come from his assets, with the remainder coming from bank loans secured against the social media platform’s assets.
Banks backing Musk’s bid balked at providing more debt secured against Twitter, arguing that the San Francisco-based company did not produce enough cash flow.
Some banks were also worried that financial regulators could reprimand them if they took on more risk.