Wall Street bankers that are in charge of Elon Musk’s funds and in charge of the transfer of funds for completing the Twitter deal are rubbing their hands, since mid-April. However, until now they did not get lucky to enjoy the riches from the fund transfer fees. On a number as high as $44 billion the fees are in the millions. They sure as hell wouldn’t want to lose one of the biggest paychecks in the history of their existence.
Past week, Musk threatens to leave the deal. This time he even does it officially. All this is due to his obsession with fake and spam accounts on the social media. He had some strict requirements that Twitter needs to comply with, so he can consider proceeding with the purchase.
Elon Musk’s Bankers Push Him To Buy Twitter – Will Win Great Fee Money If He Decides To Proceed
On everyone’s surprise, Twitter did comply with the requirements past week. So, at the moment, the cards are in Elon’s hands. He just needs to play them right. Now the question is more of – when will the deal proceed, instead of will it proceed.
Investment management, banks, and corporations are working on the deal, and a huge payday is coming their way if the deal proceeds. Goldman Sachs, Morgan Stanley, JPMorgan Chase, the Bank of America, Barclays, and Allen & Co, will collectively earn more than $190 million in fees from the transfer of funds. For your information, this is the largest fee for any purchase in the world for this year, 2022, and the third biggest since 2020.
Since 2020, only two buys generate more than $190 million in fees. The 2021 acquirement of Kansas City Southern by Canadian Pacific Railway Ltd generates $250 million in fees and tops the list. The acquirement of Warner Media LLC by Discovery Inc generates a little above $240 million and comes in second place.
On the contrary, if the deal gets called off the fees will be much lower. Goldman would earn $15 million, opposing to the $80 that they’ll make if the deal proceeds. JPMorgan will make only $5 million instead of $53 million. So it is in everybody’s interest for the deal to proceed.
While there are no official statements from any of the banks since they refuse to comment on the matter, logic states that they are inclining more to the side where Elon proceeds with the deal.
There is a saying ‘as greedy as a banker’ and it proves to be true. Aside from the transfer fees, the banks are trying to negotiate a loan acquisition with Elon just before the buy is to take place. All this so they can generate even more money. And Elon did initially think about it. He was asking for a $12.5 billion loan, however, he later re-considers and lowers it to $6 billion before scrapping the idea and selling Tesla shares to finance the deal.
Everybody included in the deal is trying to persuade Musk to proceed. But, the last call is his and his only. Will he proceed now that he receives what he asks for? Is he satisfied with the data that Twitter encloses on the fake accounts?
