Elon Musk confirmed earlier this week that he plans to buy Twitter. And he may use proceeds from a stock sale involving one of his other companies to do it.
The billionaire sold 9.6 million shares of Tesla this week, valued at $8.5 billion, which would most likely go toward his $44 billion deal to buy Twitter.
Twitter also announced Monday that Elon Musk was going to buy the social media company. Once the deal closes, which is expected this year, Twitter will become a privately held company.
What happens next? Here’s the latest on Musk’s plan to buy Twitter.
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How many Tesla shares did Musk sell?
During a three-day period after the deal to acquire Twitter was announced, Musk sold 9.6 million shares valued at $8.5 billion, according to filings Friday with the Securities and Exchange Commission.
The trades were made at prices ranging from $822.68 to $999.13.
In a tweet Thursday night, Musk said there are “No further TSLA sales planned after today.”
What changes might Musk make?
Musk said he could cut executive and board pay to cut costs and find opportunities to monetize tweets, according to a Reuters report.
Other changes to the service might include easing content moderation, which Musk has criticized, cutting back on ads, and introducing an edit button.
What does the deal mean for Twitter shareholders?
If the deal goes through, Twitter shareholders will get $54.20 a share in cash. As of midday Friday trading, Twitter shares are above $49.
One of the big benefits for taking Twitter private is Musk can make changes more quickly without worrying about pleasing shareholders.
Could Twitter shift to subscriptions?
Experts believe a subscription model might be the best option for Twitter.
“We think a subscription service will be key to a potential turnaround for Twitter,” Wedbush Securities analyst Dan Ives said Tuesday. “We view this as one of the first business model changes to the platform.”
Contributing: The Associated Press
Follow Brett Molina on Twitter: @brettmolina23.