Musk negotiates more funding for Twitter takeover, sources say

Elon Musk is in talks with major investment firms and wealthy individuals to raise more funding for the acquisition of Twitter, a deal he and the social network’s board of directors agreed to for $44 billion, sources close to the matter said.

The billionaire wants to tie less of his wealth to the business, according to the sources.

Banks last month agreed to secure financing of $13 billion for the proposed acquisition by Musk. The billionaire has pledged to provide an additional $21 billion in cash for the transaction.

Musk may use the new funding to reduce his contribution to the business, the sources said.

The billionaire also pledged to hand over some of his Tesla shares to banks to secure a $12.5 billion loan to complete the funding package for the transaction. He may try to reduce the amount in the face of interest from new investors in financing the transaction, one of the sources said.

Big investors like private equity firms, hedge fund managers and wealthy individuals are talking to Musk about financing part of the acquisition, so it would provide them with a dividend-yielding stake.

Apollo Global Management and Ares Management are among the private equity firms dealing with the billionaire, the sources said.

Musk is still deciding whether to share part of the acquisition financing with investors, the sources said. He is not currently looking to raise more debt to secure the deal, the sources added.

Musk, Apollo and Ares did not immediately comment on the matter.

Last week, Musk revealed that he sold $8.5 billion worth of Tesla stock. He did not say the reason for the sale, but investors interpreted the decision as a tool to raise funds for the purchase of Twitter.