Twitter takeover: As Elon Musk visits HQ, banks transact $13 billion in cash for deal

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Banks that vowed to back Elon Musk’s acquisition of Twitter have reportedly begun disbursing a combined $13 billion to finalise the deal.

A few hours after Musk visited Twitter’s headquarters in San Francisco, California, word of the transfers broke.

The CEO of Tesla has formally started the $44 billion buyout of Twitter by sending borrowing notifications to banks, the Wall Street Journal (WSJ) reported on Wednesday. Funding notices, like the one Musk issued to the banks, are typically delivered three to five days prior to the requirement for the funds.

Banks have apparently begun delivering funds for the acquisition, according to people with knowledge of the situation who spoke to WSJ, sparking speculation that the sale is about to close. These people said that Musk will have access to the money after the last loan contract closing requirements are satisfied so he can complete the purchase of Twitter by the end of the week.

An internal message reviewed by WSJ revealed that Twitter told its employees they will hear a word directly from Musk Friday regarding the acquisition.

Earlier, Musk shared a video of his visit to Twitter’s corporate headquarters. The SpaceX founder is shown cheerfully walking into the office carrying a bathroom sink. “Let it sink in,” he wrote in the post’s description as he entered Twitter HQ.

Entering Twitter HQ – let that sink in! pic.twitter.com/D68z4K2wq7

— Elon Musk (@elonmusk) October 26, 2022

Musk also listed “Twitter HQ” as his location and modified his Twitter bio to “Chief Twit.” He said that he would be meeting “a lot of cool people” on Wednesday at the headquarters.

Twitter had filed a lawsuit against Musk, and Delaware Judge Kathaleen McCormick is presiding over it. She agreed to delay the trial until Friday. The trial will begin if Musk doesn’t complete his acquisition by then.

It is unclear how venture capital firms that committed to funding Musk’s purchase of Twitter will react to recent events involving bank turnovers for the transaction.

As a result of claims that Musk intends to eliminate 75% of the company’s workers after he completes the takeover, a recent data analysis indicated that hundreds of employees had left Twitter to work for other internet behemoths.

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