Elon Musk is in talks with massive funding corporations and excessive net-worth people about taking up extra financing for his $44 billion acquisition of Twitter Inc TWTR.N and tying up much less of his wealth within the deal, individuals conversant in the matter advised Reuters.

The banks that agreed final month to offer $13 billion in loans secured in opposition to Twitter balked at offering extra debt for Musk’s acquisition given the San Francisco-based firm’s restricted money stream, Reuters reported final month. Musk dedicated to offering $21 billion in money for the deal.

The CEO of Tesla Inc. may use the brand new financing to scale back his contribution to the fairness test for the deal, the sources mentioned.

Musk has additionally pledged a few of his Tesla shares to banks to rearrange a $12.5 billion margin mortgage to assist fund the deal. He could search to trim the dimensions of the margin mortgage based mostly on the brand new investor curiosity within the deal financing, one of many sources mentioned.

Main buyers akin to non-public fairness corporations, hedge funds and excessive net-worth people, are in talks with Musk about offering most popular fairness financing for the acquisition, the sources mentioned. Most popular fairness would pay a hard and fast dividend from Twitter, in the identical approach {that a} bond or a mortgage pays common curiosity, however would admire consistent with the fairness worth of the corporate.

Apollo International Administration Inc. and Ares Administration Corp. are among the many non-public fairness corporations which were in talks about offering the financing, the sources added.

Musk continues to be deciding whether or not he’ll share some his fairness test for the cope with potential companions, based on the sources. Musk isn’t in search of to tackle extra debt for the Twitter deal at present, the sources added.

Musk has additionally began conversations with a few of Twitter’s main buyers about the opportunity of them rolling their stake into the deal somewhat than cashing out, one of many sources mentioned. Former Twitter CEO and present board member Jack Dorsey is inspecting whether or not he’ll roll his take, the supply added.

The sources requested anonymity as a result of the matter is confidential. Musk, Dorsey, Apollo and Ares didn’t instantly reply to requests for remark.

Musk revealed final week he offered $8.5 billion in Tesla’s shares. He didn’t disclose the rationale for the transfer, however buyers extensively interpreted it as carving out money for the Twitter deal.

Musk’s conversations with the non-public fairness corporations are one other indication he’s urgent on with the acquisition after he signed an settlement to purchase Twitter on April 25.