Musk borrowed $1 billion from SpaceX to buy Twitter!

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San Francisco. Tesla CEO Elon Musk reportedly borrowed $1 billion from his space company SpaceX in October last year, the same month he acquired Twitter for $44 billion.

According to the Wall Street Journal, Musk sought a $1 billion loan from SpaceX when he acquired the social-media company formerly known as Twitter.

According to the report, citing documents, SpaceX approved a $1 billion loan in October and Musk took the money in the same month.

“The rocket maker has loaned the executive money on several occasions over the years,” the report said.

Neither SpaceX nor X (formerly Twitter) immediately responded to the report.

Twitter first announced in April last year that it had entered into a definitive agreement to be acquired by Musk’s wholly-owned entity for $54.20 per share in cash in a transaction valued at approximately $44 billion.

The purchase price represents a 38 percent premium to Twitter’s closing stock price on April 1, 2022, the last trading day before Musk disclosed his approximately 9 percent stake in Twitter.

After months of high-voltage drama, Musk finally bought it in October after raising money from banks and insiders.

Tesla CEO drops borrowing plan and contributes more cash.

In the end, Musk sold about $15.5 billion worth of shares in Tesla in two tranches.

The billionaire personally paid a little over $27 billion in cash for the transaction.

As part of the settlement, Oracle co-founder Larry Ellison handed over a $1 billion check in addition to $5.2 billion from investment organizations and other large funds.

The Qatar Investment Authority, which controls Qatar’s sovereign wealth fund, Qatar Holding, also contributed.

About $13 billion of the remaining funds are secured by bank loans, including those from Morgan Stanley, Bank of America and others.

(IANS)

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