Elon Musk registers three ‘X Holdings’ affiliates to support Twitter takeover bid

Elon Musk has registered three companies in Delaware under the name “X Holdings” to support his bid to buy Twitter and give privacy to the social media giant.

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TWTR Twitter you. 48.93 +1.85 + 3.93%

According to a filing with the Securities and Exchange Commission on Wednesday, X Holdings I will act as the parent company overseeing a potential transaction, while X Holdings II will merge with Twitter and use to purchase its existing common stock. A separate filing from the Securities and Exchange Commission (SEC) adds that X Holdings III will be used to help fund the deal.

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Musk is exploring whether to initiate a tender offer to acquire all outstanding shares of Twitter’s common stock, noting the board’s unresponsiveness to his offer of $54.20 per share.

Musk says he has received pledges of about $46.5 billion to help fund a potential deal, including nearly $21 billion in equity financing and about $25.5 billion in debt financing through Morgan Stanley Senior Funding and other companies, including Bank of America and Mizuho Bank, Barclays, MUFG, Societe Generale and BNP Paribas.

Twitter headquarters in San Francisco October 27, 2021. (Tayfun Coskun/Anadolu Agency via Getty Images/Getty Images)

Twitter told FOX Business Thursday that it was receiving Musk’s updated, non-binding offer, adding that it was “committed to conducting a careful, thorough, and considered review to determine a course of action that it believes is in the best interest of the company and all of Twitter’s shareholders.”

Twitter’s reaction to ELON MUSK only proves change is needed

The musk that has 9.2% share On Twitter, he has been a vocal critic of the platform and its CEO, Parag Agrawal, recently questioning whether the company adheres strictly to the principles of free speech.

Although musk was in the beginning Invited to join Twitter’s board of directorsis later offer rejected. As part of joining the Board of Directors, Musk will be able to own no more than 14.9% of Twitter’s stock while serving on the board or for 90 days thereafter. Musk’s board term expired at Twitter’s 2024 annual meeting.

Elon Musk

Tesla CEO Elon Musk during a tour of the Tesla Gigafactory’s futuristic foundry plant August. 13, 2021, in Grünheide near Berlin, Germany. (Patrick Ball – Paul / Getty Images / Getty Images)

After announcing Musk’s $43 billion bid, Twitter adopted a limited-term shareholder equity plan, commonly referred to as a poison pill, to prevent it or any other entity or group from acquiring beneficial ownership of 15% or more of Twitter’s existing common stock in a transaction not approved by the Board of Directors. The plan will expire on April 14, 2023.

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It is unclear whether X Holdings can also be used to combine other Musk companies, such as SpaceX, Tesla, Neuralink and The Boring Company.

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In 2012, Musk expressed interest in creating a holding company that would own shares in both Tesla and SpaceX. In 2020, Tesla investor Dave Lee He proposed to form a holding company called XWhich Musk said was a “good idea”. In addition to musk The domain is owned by X.coman online payment company that merged with PayPal.

Musk recently told TED’s Chris Anderson that it would be “difficult” to combine everything into one company.

“Telsa is a public company, and the investor base for Tesla, SpaceX and certainly The Boring Company and Neuralink is very different,” Musk explained. “It’s not easy to combine these things.”

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