Undoubtedly one of the most popular names in the entrepreneurship world, Elon Musk established three new companies called “X Holdings”. Musk, who has quietly applied for companies named X Holdings I, X Holdings II and X Holdings III, is trying every way to buy Twitter.
Tesla and SpaceX CEO’s SEC file, prepared to update investor activities, revealed Musk’s new companies. Firms named X Holdings will be used as part of the Twitter buyout offer. But it could also be Musk’s “roof company” plan.
X Holdings step for Twitter from Elon Musk
Saying that he wants to buy the entire company after becoming a partner in Twitter in the past weeks, Elon Musk is looking for new sources for the financing he will provide to the shareholders. Tesla and SpaceX CEO, who has not yet received a response to his offer, established a new trio for Twitter.
Tesla and SpaceX CEO pledged funding for approval to acquire Twitter. Analyzing the files, experts revealed that Elon Musk has deals from “banks and other organizations” that will provide about $46.5 billion.
But not all of the money needed to buy Twitter will come from Elon Musk’s budget. Approximately $13 billion of the buyout offer is from various investment banks such as Morgan Stanley; The $12.5 billion financing will be provided from Elon Musk’s margin loan in exchange for Tesla shares.
The third part of the proposal will be X Holdings companies. Having pledged equity for the remaining $21 billion to buy Twitter, Musk cited X Holdings as the primary investor.
It is also thought that Elon Musk will move all of his companies under X Holdings. Similar to Google’s parent company Alphabet, Elon Musk has the potential to use X Holdings for all of his ventures.
However, merging companies such as SpaceX, Neuralink and Boring into X Holdings is not easy. Since the companies founded by Musk are private companies and their valuations have reached record levels in recent years, they have to buy each of them separately.
What do you think about the X Holdings step taken by Elon Musk? Do not forget to share your views with us in the comments section or on the SDN Forum.
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