Elon Musk‘s takeover of the social media giant Twitter was early Christmas for many and at the top of that list was Morgan Stanley, a large investment bank. The institution gave financial advise to Musk, the world’s richest person, and guided him through the historic deal.

What did Morgan Stanley do?

In addition to being in the backdrop and quietly pulling the strings of Musk’s takeover of Twitter, the investment bank also helped find a huge chunk of the funding that enabled the Tesla CEO to make an offer.

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Out of the $44 billion that was required to take over Twitter, more than $25 billion were secured by Morgan Stanley. This amount also included $12.5 billion in loans that use Musk’s Tesla stock as collateral.

What will Morgan Stanley get?

Morgan Stanley is all set to make a quick buck by pitching in support for the upcoming merger. The sheer size of the deal between Elon Musk and Twitter will likely deepen the pockets of the investment bank, and spike its clout on Wall Street.

According to reports from CNN, such deals fetch 1-3% value of the merger deal as commission. With the valuation of the Musk-Twitter deal being roughly $44 billion, Morgan Stanley is set to make millions, or maybe even more than a billion. 

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The commission should range between $440 million to $1.3 billion and is likely to be delivered after the deal is completed and Musk has taken control of the social media platform.

How did the deal impact the US markets?

Shares of Twitter Inc. rose more than 5% Monday to $51.70 per share. On April 14, Musk announced an offer to buy Twitter for $54.20 per share. While the stock is up sharply since Musk made his offer, it is well below the high of $77 per share it reached in February 2021.