could you imagine musk calling up larry ellison and being like, "larry, listen, you pledged the $2 billion to me for this piece of junk company i've disparaged in public for the past, you know, how many many months caused many of the employees to leave. not shown any trastrategic direction for where it is going. so about the $2 billion. you know, even for larry, it is a meaningful sum of money. it'll be tough conversations to v. we'll see this is going to be a test to musk's ability to be the entrepreneur of our generation if this goes through, will he come through for the larry ellisons who put their blind faith in him it'll be a real test of his legacy. >> let's say it does go through, alex fast forward not even too much out into the future, as david says, you know, the deal could close in a matter of days at this point what can elon musk do? when he first made that offer, he had sort of, you know, blue skies, right twitter can be anything. it is a great platform, et cetera as you mentioned, he's disparaged the company, the platform, for months and months on end at this point as a leader

released showing all kinds of personal messages with fellow tech billionaires like jack dorsey or larry ellisonare not the kinds of text that these guys want out in front of the world especially on the eve of that deposition. it could keep getting worse. >> what do you mean it could keep getting worse? >> for once, he could lose and still be on the hook for that $44 billion and find for trying to back out of the deal. also, more personal information could be made public. his legal team faced more trouble when the judge ruled in favor of the twitter request for additional discovery around potential messs in elon musk's circle and that . that whistleblower. while the whistleblower has said under oath that he did not contact elon musk or his team, twitter wants to keep sticking around a little bit in light of a mysterious email on may the sixth that turned up in the fils the files. i know this is crazy. try hard to keep following along but he and his team don't want any more digging. this is likely the simplest fix and while none of this means that he he will actually buy twitter foe for sure beca

>> reporter: when elon musk pledged the deal months ago, you heard binance and larry ellison all involvede going to pledge money to the deal. they have been quiet since then. of course, the market environment has changed so much. we have seen a plunge in tech stocks and interest rates on the rise what does that mean for some of the debt financing in particular and whether there will be investor appetite from the more risky debt coming on to the sn market will the banks shift to the insti institutions there is a deal with citrix taken private. banks involved in that and still holding on to that debt. it is difficult to shift this in the market the environment has changed so much there are questions over the debt financing over the original backers. the last piece is will elon musk has to sell more tesla shares to finance the deal if so, that could weigh on tesla stock. will he put that up as collateral lots of questions on the financing side to be resolved by the two parties which understandably have very little trust in each other. >> as we await for the final outcome, blue subscribers ca

going to buy it anyway, and not going to waste anymore energy and bring more powerful people like larry ellisonng before he called the deal off. i think for him, take it on the chin, it's not a disastrous price but he sees upside and it is the entire ecosystem and it and to your point, this is a situation where if done correctly twitter is unable to do it but could be a situation where he could leverage and take the company to the next level. he has the means and reach but don't waste money and energy and time on a lawsuit that could be dragged out. neil: your thoughts on the market itself, do you by the rally? are we back in you know what mode? >> i'm a trader, i have been selling it today. i actually held yesterday in selling a little bit today. i got some s&p 500, i have been nibbling here but i am concerned with inflation, starting to see prices, makes me feel a little bit better but 75 basis point hike is on and not out of the woods just yet. neil: still baiting on 75 basis points but it is getting a little volatile but see what happens. up 704 points and expectations are we will see anoth

54.20 it is now, 31 plus billion of my own money, you know, he's raised money from investors like larry ellison as well. i'll cut that down 25 billion of my money, and 13 billion of debt from morgan stanley, and we're done. thanks for your time. >> hold on i'm going to connect dots between mark zuckerberg, kim kardashian and elon musk, and my question connecting all of those is this, there have been people who have tried to hold mark zuckerberg personally liable for things that facebook has done policy wise, and we just seen over the past couple of days, several hours, that kim kardashian has gotten into trouble with regulators over what she has posted about cryptocurrency on instagram, and so given that elon musk hirmsel is a value figure, not just in the twitter saga but tesla, spacex, other ventures, does owning twitter open elon musk up to personal liability that shareholders should think about from here. maybe it's not just about this transaction, and how much he has available funds-wise, but is this sort of a new era for musk-connected companies >> i think it has to be. you have to consid

why is that important because equity financing was coming from musk, largely, coming from larry ellisonmarc andreessen and a few other players. about they back out, that is not good. those are friends of elon, okay? neil: but they have not backed out? >> there is no word. they won't answer our phone calls. neil: there would be good financial reason for them to back out. >> right. the stock has moved against them. the debt financing is interesting because you turn to that, that is essentially where i think apollo would play mostly and also you know, big banks want to do that. now, here's the problem with the debt financing. the markets have moved against them. we have higher interest rates. we have a selloff of the, no one thinks twitter other than you know, its bid is worth $44 billion. banks, if they have to do the loans, generally like to sell it, they syndicate it out t will be really hard in this environment. people were not buying leveraged loans like in the past. banks could take a loss on that. that could material adverse clause kick in for musk, back out, pay the billion dollar

"and again in august he is getting $7 billion in vc investments from larry ellison and mark andandreason, and $4 billion in twitter he already owns he has $27 billion of the money he needs, leaving more he may have $4 billion left over from last year's stock sale. add it together, depending how you count that, he may need to raise $6 billion to $10 billion. he may need to raise $3 billion or more. another challenge is the bank debt morgan stanley and others committed to loans of $12.5 billion. some of that they're going to have to resell to invesers credit markets tightening. they could end up losing hundreds of millions on the loans and need to offer interest rates of 15% or more just to get people interested. also, guys, look at tesla today. it has lost over $60 billion in market cap since noon yesterday. >> yeah. >> when we learned of this deal being back on the table. tesla losing about a twitter san a half in market value since yesterday. >> ouch. that puts it in perspective, robert twitter and a half back to the bank debt, though, so they basically signed this deal in april. we tal

larry ellison, you know, a well-known trump supporter, and cofounder of oracle. so we have a lot of people who have strong beliefs about free speech, and politics. i also think one of the biggest questions that we can address is, if he does loosen up the standards of the platform, by allowing trump back on, by kind of expanding the speech of the right, does this become a toxic place full of misinformation, that then makes the platform not usable to the broader public that once it for public debate? so there is going to be this very fine line that he is going to have to walk between people wanting to be on the platform, and people who are clearly very far on the right that are just rejoicing, and are ready to jump on the platform, and gain new audiences, gain new followers, and put out lots of content that twitter in the past was policing, or at least trying to police. >> okay, but cara, it turns to congress. for years, as twitter has been becoming more, and more powerful, almost like a utility in our lives, people have been begging for smart regulation from congr

already seen him sell a lot of tesla stock, and he's gotten a lot of money from his friends like larry ellisonthere's two questions in my mind. one, are those folks still going to pony up, right? he's spent the last couple of months trashing twitter publicly, so they may say i don't know if i want to go through with this. we don't know what the terms of their agreement are. but, second, he's still billions of dollars short, so he's either going to have to get more investors behind him which could be tough or sell a lot of tesla stock. i mow you and i love to look at where with that share price is, that could plummet if tesla shareholders get spooked that he starts selling this off to pay for this acquisition that just a few weeks ago he didn't want to do. neil: yeah. and it's down 30 plus percent from it highs, so the currency for his deal is less currency. kelly, i understand now. i think. all right, thank you very much. [laughter] kelly o'grady following the story of a lifetime. she loves it with her background in finance and m&a. to me, it's like, whoa, where is this going? we have a a lot

and andrew's dealbook newsletter talks about morgan stanley, ben horowitz, larry ellison who put in amuch due diligence here. and commitments were made at much lower interest rates, so if you keep the deal intact and don't change it at all, then the commitment of the lenders is at interest rates that are far lower than they are now. so, i think there will be some people uncomfortable about all of that, but i'm not a legal expert to know whether a potential lender that is committed to financing such a person could or would want to get out of such a deal >> so, the banks are going to figure it out one way or the other. >> yeah. i mean, i think, he will excite people by his vision of what twitter can be, and if that happens, it will all go ahead smoothly he'll have to work it out with twitter, how the handoff is. you don't want a messy handoff here you don't want people messing up twitter when it's being handed off so there's things still to negotiate. >> walter, thank you we'll see you again soon >> thank you, becky. >> when we come back, stephanie joins us with a look at the trading da

not to mention he's put up $25 bill of his own, 75 plus billion from other investors, guys like larry ellisonal just rolled in. he may take the other musk you talked about you talked about the fact this has been an underperforming company for, man, as long as we can remember it being a public company. >> i think that's exactly right. twitter is one of the greatest product designs in the history of silicon valley. and yet the management team, each management team has successfully failed to capture a financial return that was commensurate with the import of the product in our society i think that's a huge problem. i'm a big believer in scott galloway's motion that twitter could be like bloomberg. it could be this premium service with three core markets. it has journalism, politics and celebrity. and those three communities live on twitter for them, having access to a twitter that's less toxic would be enormously valuable the notion those people might spend 1,000, 2,000, $3,000 a year in order to have a platform that was safe for what they want to do, and that everybody could view on twitter for

ready to fund and/or their equity partners, remember the $7 billion he raised from the likes of larry ellisonnone of them had been contacted either it does appear when mr. musk sent in that letter, and maybe it was him and his lawyer didn't seem to know on monday night when he authored that letter as, of course, at the same time, he was tweeting about ukraine and russia but here we are, and where we are is that, well, there's a lot of people who believe in the 22 days between now and when he has to close, who knows what elon musk and his legal team will come up? that's the fear. other side would say, there's nothing they can do. they are going to close, and if they don't, chancellor mccormick is going to say, we're having a trial, we're putting it on in november, it's going to be fast and then we're going to force you to close that said, you got to get the latest financial statements or at least ask for them from twitter, and then he's got to sign the solvency opinion or certificate. it's got to sort of be given to the banks as well. there's some questions or concerns about whether musk will