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It means between himself, and a group of others, he has collected enough money to buy Twitter, as evidenced by the letters of intent.

Those are legit. Banks don't sign notes without some intent. They can back out, but they are not meaningless.

It's important so that the current shareholders and the board know that Musk's bid is legitimate, and not something he's just making up.

In order for the banks and others to back him in this bid, he will have had to provide with with a lot of info.

This could be a big PR move, but Musk will have had to hire very expensive bankers to actually go through this as if it were a real thing.

"Why can't you do this?"

Because Goldman and other Private Equity firms won't back you (well, assuming they won't). And they won't give you a letter to the board of Twitter saying they will.



Yeah, the costs to do this are running in the millions, even if nothing ever happens. It was basically a foregone conclusion that Musk can do this, but each bank has to do a bunch of work inside to make sure they're not exposing themselves in ways they don't want to.


Not a foregone conclusion. It's complicated. And banks definitely have to do their due diligence.

If it was Buffet then it would be 'almost a foregone conclusion'.

Not with musk.

Musk has gained $10-30M in free publicity thus far. He's made the front pages of the news everywhere in the world.

He can hardly lose here.

And I'm not a Musk fanboy or anything.


One difference is Buffet rarely if ever buys anything, Berkshire buys things. And I dare say Berkshire has everything ready to go.

In this case Musk is buying using TSLA (and SpaceX?) shares as collateral, not having TSLA buy.


I meant Berkshire.

Tesla nor SpaceX would have no reason to buy Twitter, so Musk has to do it himself.

He has Tesla shares, that's kind of a secondary thing.

It's a leveraged buy out - banks and other firms would be going in with him. A bit like you buy a house.




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