According to a Bloomberg report, billionaire Elon Musk, who just secured capital to back his intended Twitter takeover, pitched his vision for the Big Tech company in order to sway multiple Wall Street banks to open up their wallets.
It was a multi-day scramble to gather $46.5 billion in funding for the purchase. Musk had to persuade the banks to bet on his high-profile Twitter bid, after announcing his $54.20-per-share offer for the tech giant on April 14.
Musk's advisers presented his investment thesis to potential lenders during a call Monday, according to what sources told Bloomber. Some of the lenders saw a slide presentation offering Musk's ideas on how Twitter's business operations would look like as well as its financial profile and how to boost revenue.
Musk has tweeted about plans to authenticate Twitter users and to stop paying its board a salary. However, details of this plan have not been made public and Musk has not publicly outlined much about how he'd manage the company.
Musk "lined up about $13 billion in debt financing and a $12.5 billion margin loan commitment from Morgan Stanley and 11 other banks, and pledged an additional $21 billion through equity financing. Besides Morgan Stanley, other banks that appeared on both loans include MUFG Bank, Bank of America Corp., Mizuho, BNP Paribas SA, Societe Generale SA and Barclays Plc," according to Bloomberg.
To onlookers, this move means business. Steven Davidoff Solomon, a professor at the School of Law at the University of California, Berkeley, told the New York Times that this kind of action goes far beyond just talk. "It's serious," Solomon said. "He's getting more professional and this is starting to look more like a normal hostile bid. You don't do that unless you're going to launch an offer."
The big banks deciding to back the magnate's expensive venture, however, means that Musk isn't the only one who believes the feat can be accomplished.
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