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Two Canadian banks lend $1.46 billion to Musk for Twitter acquisition

Following news breaking that Elon Musk will acquire Twitter in a deal valued at $44 billion USD (about $56 billion CAD), The Globe and Mail has revealed that the Royal Bank of Canada and the Canadian Imperial Bank of Commerce are aiding the purchase, at least in some capacity.

According to the report, Musk has borrowed about $25 billion in loans from 12 banks, out of which RBC pledged $750 million USD (roughly $955 million CAD) and CIBC put up $400 million USD (roughly $500 million CAD), totalling about $1.15 billion USD ($1.46 billion CAD) of Canadian Bank loans.

Additionally, Musk is using a 17 percent stake of his Tesla share, which is valued at around $170 billion for a $12.5 billion loan to fund the acquisition.

CIBC and RBC’s loan is the least risky for Musk since it charges the lowest-cost debt among all 12 lenders.

Musk underlined that his decision to take over the company was motivated by his desire to protect free speech.

“Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated,” said Musk in a press statement of the acquisition news. “I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans. Twitter has tremendous potential — I look forward to working with the company and the community of users to unlock it.”

Image credit: Shutterstock

Source: The Globe and Mail

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Mobile Syrup

It’s official: Elon Musk to acquire Twitter

Twitter has announced that Tesla CEO Elon Musk will officially be acquiring the platform.

The world’s richest man is buying the social media giant at $54.20 USD (about $69 CAD) per share in cash in a transaction valued at approximately $44 billion USD (about $56 billion CAD). The deal is expected to close later this year, pending Twitter shareholder and governmental regulatory approval.

“Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated,” said Musk in a press statement. “I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans. Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it.”

More to come…

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Mobile Syrup

Decision about Elon Musk’s Twitter takeover might come soon

Twitter appears to be in its final stretch of negotiations with Tesla and SpaceX CEO Elon Musk, before the world’s richest man takes the company private.

Musk recently claimed to have secured $46 billion USD (roughly $57 billion CAD) in debt and equity financing to purchase Twitter outright, and while Twitter’s board of directors were apprehensive of the move at first, and even deployed a ‘poison pill’ maneuver to block Elon Musk’s buyout proposal, a new Bloomberg report suggests the decision could be made as soon as today, Monday, April 25th.

The $54.20 per-share deal, according to Musk, is suitable and enticing, though he did say that if his bid is not accepted, he “would need to reconsider his position as a shareholder.”

Musk also stated that in order for Twitter to thrive, it needs to become a genuine platform for free speech, and for that to happen, it must be taken private.

Since the ‘Musk-Twitter’ saga began, the social media platform has announced that it is working on an ‘edit button.’ Soon after, reverse engineer Jane Manchun Wong discovered that the in-development feature would give users the ability to check the Tweet’s edit history. 

Additionally, if taken private by Musk, the platform will work to get rid of the spam bot infestation it currently finds itself in, and give all human users a new visual authentication mark.

Considering the recent toll the Russia-Ukraine war has inflicted on stock markets around the world, paired with the Federal Reserve System’s hawkish outlook about rate hikes to curb high inflation, the $54.20 per-share deal might turn out to be lucrative for Musk once the market starts reversing.

Source: Bloomberg

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Mobile Syrup

Elon Musk claims to have secured $46.5 billion for Twitter bid

Elon Musk, Tesla’s CEO and perpetual social media shit poster, says that he has lined up $46 billion USD (roughly $57 billion CAD) in debt and equity financing to purchase Twitter and take the platform private.

Musk says that he will personally contribute $33.5 billion USD (about $42 billion), including $21 billion USD (approximately $26 billion CAD) of equity and $12.5 billion USD (roughly $15.7 billion) of margin loans against his Tesla shares to purchase Twitter.

Musk — who is the richest man in the world — first presented his “best and final” cash offer to Twitter’s board in early April after deciding not to join the company’s board following the purchase of a 9.1 percent majority stake in the social network.

Twitter responded to this offer with a “poison pill” maneuver involving a new “shareholder rights plan” to prevent the takeover.

Musk claims to have plans to protect his definition of free speech on Twitter and suggests that he will add new features to the platform, including an ‘Edit’ button (which Twitter is already working on).

A Twitter spokesperson told Engadget that the social network is conducting a “careful, comprehensive and deliberate review” of the offer.

Via: Engadget 

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Mobile Syrup

Elon Musk is couch surfing after having sold all his physical possessions

The world’s richest man who wants to take Twitter private has seemingly gotten rid of several of his worldly possessions, and currently doesn’t own a house.

In an interview with the head of TED Chris Anderson, which aired yesterday, Monday, April 18th, Anderson questioned Tesla and SpaceX CEO Elon Musk about wealth inequality and how people are hugely offended by the notion that an individual can possess the same wealth as a billion or more of the world’s poorest people.

Musk replied by saying, “For sure it would be very problematic if I was consuming billions of dollars in personal consumption, but that is not the case. In fact, I don’t even own a home right now. I’m literally staying at a friend’s places. If I travel to the Bay area, which is where most of Tesla engineering is, I basically rotate through friends’ spare bedrooms.”

Musk, whose current net worth stands at a whopping $264.6 billion ($334.1 billion CAD) said that he doesn’t own a yacht or take vacations, and the only possession he currently has is a jet plane, which he uses to save time.

Musk tweeted back in 2020 that he is selling all his physical possessions, and since has sold off seven of his California homes for about $128 million. The SpaceX CEO was last reported to be living in a $50k house at SpaceX’s Starbase site in Boca Chica, Texas, and it is unknown when he started couch hopping.

Image credit: Shutterstock

Via: CBS News

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Mobile Syrup

Former Twitter CEO criticizes the platform’s board amid talks about Elon Musk takeover

Former Twitter CEO Jack Dorsey is criticizing the social media platform’s  board after it issued a new shareholder rights plan to block the world’s richest man, Elon Musk, from taking the company private.

It all started with Initialized founder Garry Tan‘s tweet stating, “The wrong partner on your board can literally make a billion dollars in value evaporate,” to which Dorsey replied by saying “big facts,” indicating that he agrees with Tan.

@iHadrami_‘s reply to the tweet, which talks about Twitter’s early days being “mired in plots and coups,” specifically among its founding members, further riled up Dorsey, with him stating that said plots and coups have “consistently been the dysfunction of the company.”

It’s worth noting that despite resigning as the platform’s CEO, Dorsey still has a seat on Twitter’s Board of Directors until the end of his term next month.

The debate comes soon after Musk purchased 9.2 percent of the social network in March, making him the largest individual shareholder of the company. At the time, he was set to join Twitter’s board of directors before pulling out.

Then, earlier last week, Musk revealed a proposal to purchase Twitter outright and take the company private. In a letter to the board, Musk offered to pay $54.20 a share in cash, which turns out to be about $43 billion for the company. In response, the Twitter board of directors deployed the shareholder rights plan, which, in essence, allows shareholders to purchase additional stock, and would prevent Musk from seizing control of the platform.

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Mobile Syrup

Tesla sets disappointing EV precedent by removing included chargers from new vehicles

Telsa and Elon Musk have decided to remove the Mobile Charger from all future Tesla deliveries. Even if you ordered your car months ago, it will now arrive without a charger.

And the chargers that you need to power up an electric vehicle (EV) cost a lot more than an iPhone brick.

Before we get into this, I’ll briefly explain the different chargers that Tesla offers and the variety of chargers that owners typically use.

Understanding all the Tesla chargers

Tesla Charger

The most common Tesla charger that people recognize are the company’s Supercharger stations. These large stations can top up a Tesla in around an hour or less, depending on how much electricity they’re rated to handle. Newer Stations can push a max of 250kW, and older options max out between 75kW and 150kW.

The next fastest charger is a Tesla Wall Connector. These smaller chargers need to be installed by an electrician at your home but can charge moderately fast at a rate of around 67km per hour, according to Telsa’s website.

After that, the Mobile Connector is the slowest. This is the model that no longer comes with Tesla purchases. The option used to include Tesla cars and uses an outlet type called the NEMA 5-15. It can plug into traditional three-pronged 120-volt outlets and provide around 4km of range per hour.

You can get adapters for this charging cable (pictured above) that allow it to plug into larger 240-volt outlets like a stove or a dryer. The Nema 14-50 adapter also used to come with Tesla purchases, but the company removed it at some point.

You now need to buy these adapters separately. They allow you to charge your Telsa at a rate of 14-30km per hour, depending on what car you have and how much power your outlet can give.

You can learn more about charging a Tesla here.

What’s being removed

All Tesla purchases previously came with the Mobile Connector in North America with the regular 120-volt adapter (Nema 5-15). Now you need to pay $275 for that cable.

Tesla says it’s removing the charger from the car because most people don’t use it. I’d argue that’s not the point. This charger is so slow that most people likely won’t want to use it. However, it’s not about wanting to use it, but rather having it available when you need it.

Imagine driving to visit a friend in a small town. Perhaps that town only has one fast charger? If that charger is broken, then what are you going to do without a slow charger in your frunk as a backup?

Tesla is likely correct when it says that most people won’t use this charger, but anyone who goes on road trips knows how important it is as a failsafe when you run into an issue.

After almost being stranded in am EV Porsche, I don’t feel comfortable driving more than a few hundred kilometres without a 120-volt charger or at the very least a 240-volt charger in the car with me. While the 240-volt is a lot faster, actually finding places that have an outlet close enough to a parking spot is really difficult.

Even if most drivers never use these chargers at home, I truly think there should be a short version placed inside of every EV in case of emergencies. Sure it might take a long time to charge using this cable, but it will allow you to plug into way more places and could be the difference between driving or towing your car home.

When Tesla first announced that it was pulling the charger, the Mobile Charging kit started at $400 USD (roughly, $500 CAD). After some backlash, the company dropped that price down to $275 CAD. However, this version only comes with the 120-volt (Nema 5-15) adapter. The rest of the Nema adapters cost another $245 CAD. This means having a complete set of emergency chargers in your trunk will cost $520 CAD.

Source: Elon Musk, Tesla Store, Electrek

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Mobile Syrup

Twitter board of directors issue “poison pill” maneuver to block Elon Musk’s buyout proposal

Twitter’s board of directors has issued what is frequently known as a “poison pill” maneuver to block Elon Musk’s buyout offer. This tactic blocks any such hostile takeover by stakeholders, providing a speedbump for Musk.

Following Musk’s public proposal to purchase the rights of Twitter for $43 billion, the social media platform’s board of directors has responded. The board is utilizing a new “shareholder rights plan” to seemingly fight off Musk’s bid.

The poison pill maneuver commonly enables certain shareholders the ability to purchase additional stock. This tactic often halts an outsider from seizing control of a company.

Earlier, Musk stated his proposal to purchase Twitter and take it private. In a letter to the board, Musk offered to pay $54.20 a share in cash. The Tesla CEO believes his offer was a suitable and enticing bid. Though, he notes that if his bid is not accepted, he “would need to reconsider [his] position as a shareholder.”

Musk purchased 9.2 percent of the company in March, according to an SEC filing he shared. This makes Musk the largest individual shareholder of the company. At the time, he was set to join Twitter’s board of directors before pulling out. In a public letter, Twitter CEO Parag Agarwal was unable to state why exactly Musk dropped out but did assure that it was “for the best.”

Over this entire ordeal, Musk has been outspoken about his plan in wanting to reevaluate the moderation of Twitter. Of course, that also came with other mentions that Twitter Blue subscribers should be verified and a number of other changes.

The situation between Twitter and Musk will undoubtedly continue over the weeks. We will have to see how it shakes out and hopefully, this can all be put behind us soon.

Source: AP News

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Mobile Syrup

Elon Musk offers $43 billion to take Twitter private

Elon Musk wants to take Twitter private, and he’s willing to pay $43 billion to make it happen.

On Thursday, the billionaire filed official documents with the  U.S. Securities and Exchange Commission. He’s offering to pay $54.20 a share in cash, a deal he says shareholders will “love.”

Musk’s Twitter saga started earlier this month when a filing showed he purchased 9.2 percent of Twitter in March. He was set to join the social media giant’s board of directors before pulling out.

“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy,” Musk says in the most recent filing.

In a message posted on the platform, Twitter CEO Parag Agarwal provided no specifics on why Musk pulled out but believed the decision was “for the best.”

Musk’s recent filing provides a little more detail for his thought process, doubting how the company currently runs.

“Since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.”

This is Musk’s only offer, and he states he will not be “playing the back-and-forth game.” He will reconsider his position as a shareholder if the offer isn’t accepted.

Image credit: Dan Taylor/Heisenberg Media 

Source: U.S. Securities and Exchange Commission via Bloomberg

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Mobile Syrup

Twitter shareholder hits Elon Musk with lawsuit over his investment

Tesla CEO Elon Musk became Twitter’s largest shareholder in the past few weeks, then decided to join Twitter’s board of directors and not join the board directors about six days later. Now, a Twitter shareholder has filed a class-action lawsuit against Musk over his delay in disclosing his investment in Twitter to the SEC.

Musk was required by law to file paperwork with the SEC by March 24th when his stake in Twitter grew five percent, but he didn’t until April 4th. Now, he’s being sued for $156 million USD (roughly $197 million CAD).

“Investors who sold shares of Twitter stock between March 24, 2022, when Musk was required to have disclosed his Twitter ownership, and before the actual April 4, 2022 disclosure, missed the resulting share price increase as the market reacted to Musk’s purchases and were damaged thereby,” the lawsuit states.

The shareholder who made the suit says he and others “sold shares of Twitter at artificially deflated prices during the class period, and has been damaged by the revelation of the Musk’s material misrepresentations and material omissions.” Further, the shareholder and the class “would not have sold Twitter’s securities at the price sold, or at all, if they had been aware that the market prices had artificially and falsely deflated by Defendant’s misleading statements.”

This has been a strange past few weeks for Twitter and Musk. The co-founder of Tesla also recently polled his follers on Twitter asking whether the company should change its name, asked about an edit button and more.

Twitter CEO Parag Agarwal states that he believes that Musk not joining the Twitter board was for the best.

Source: Marc Bain Rasella v Musk, Engadget