Elon Musk has promised to finish the $44 billion Twitter takeover by Friday, the same day he is subject to a court-mandated deadline.
According to sources with knowledge of the situation, Bloomberg News reported on Tuesday that Musk made the commitment during a video conference call with bankers who are aiding in the deal’s financing.
One of the last stages in contributing $13 billion to the sale, the banks, led by Morgan Stanley, have completed putting together the final credit arrangement and are now finalizing the paperwork.
Judge Kathaleen McCormick of the Delaware Chancery Court earlier gave Musk until 5 p.m. on Friday, October 28, to complete the transaction, failing which a new trial date would be established in Twitter’s case attempting to compel the sale.
Twitter workers, meanwhile, published an open letter this week objecting to Musk’s claimed intentions to fire up to two-thirds of the company’s personnel after closing the transaction.
On Tuesday, neither Twitter nor Musk’s attorneys were available for comment.
For the purchase, Musk has promised to provide $46.5 billion in stock and debt funding, covering the transaction’s $44 billion price tag and closing fees.
A total of 13 billion dollars in debt financing will be provided by banks, including Morgan Stanley and Bank of America, to fund the purchase.
Another $7.1 billion will be contributed by a group of equity investors, which includes Saudi Prince Alwaleed bin Talal and co-founder of Oracle Larry Ellison.
Musk is borrowing money against his remaining investment in Tesla and earnings from the sale of Tesla shares to pay for a large portion of the remaining cost.
In afternoon trading, Twitter shares increased 2.7 percent to $52.91 to go closer to Musk’s offer price of $54.20.
Twitter workers are criticizing Musk’s acquisition and claims of impending layoffs in an open letter as his transaction barrels toward completion after months of spectacular swings and turns.
The Washington Post stated that Musk intends to reduce Twitter’s workforce by up to 75 percent.
The layoffs are in line with Musk’s past claims that the social media firm is overstaffed and that its 7,500 employees have a “strong left-wing tilt.”
Additionally, the idea would leave the business with only 2,000 people and is based on talks Musk had with potential backers of his takeover over the previous several months.
Staff members described the potential layoffs as “reckless” and “a clear effort of worker intimidation” in the critical memo sent on Monday.
“Elon Musk’s proposal to lay off 75% of Twitter employees would damage Twitter’s capacity to serve the public discussion,” the letter’s unpublished draft said.
“A threat of this size is dangerous, undercuts user and consumer confidence in our platform, and is an open act of employee intimidation,” the company said.
The letter continued by demanding that Musk guarantee the number of employees now employed by Twitter if the purchase proceeds.
Additionally, it demands that Musk, a well-known libertarian who has recently shown an affinity for the right, refrain from discriminating against staff members based on their political views.
Instead, the letter requests that Musk agree to “fair” severance procedures and more open communication about working conditions, while admonishing the 51-year-old multibillionaire that employees “will not be bullied.”
The message, seen by DailyMail.com, states that “a threat to Twitter employees is a danger to Twitter’s future.”
“These threats affect us as employees and show a fundamental disconnect with the reality of running Twitter,” we were told.
They “threaten our way of life, our capacity to get basic healthcare, and the right of visa holders to remain in the nation in which they are employed.”
Further comments from staff members said that “we cannot perform our job in a climate of continual abuse and threats” and that “without [their] labor, there is no Twitter.”
The note went on to say, “We, the Twitter employees, will not be intimidated,” and called for coworkers to sign it in agreement.
We reaffirm our commitment to helping the communities, organizations, and companies that use Twitter. We won’t stop supporting the public dialogue.
The notice continued by listing expectations for “current and future” Twitter leadership under the headings “Respect,” “Safety,” “Protection,” and “Dignity.”