According to Reuters Elon Musk is currently negotiating with large investment firms and wealthy individuals in order to get additional financing to help him finance his purchase of Twitter for $44 billion (NYSE:) as well as to use less of his capital during the transaction.

Musk, the world’s richest man with an estimated worth of roughly $245 billion, disclosed last week that he offloaded $8.5 billion worth of Tesla (NASDAQ:) shares after Twitter accepted his takeover bid.

Musk has decided to save his most wealth and use it to secure financing elsewhere, despite the fact that his fortune is tied to Tesla stock. This new financing could be in preferred equity or common equity. It may also lower the $21 million cash contribution Musk has made to the purchase and the margin loan that he secured against Tesla stock.

Last month, the investment firms that agreed to provide $13 billion in loans were reluctant to offer more debt for the deal due to Twitter’s limited cash flow.

Musk also pledged part of his Tesla shares for investment firms to help secure a margin loan of $12 billion. The billionaire may reduce the margin loan if new investors show interest in funding Twitter’s acquisition.

To help Musk finance the deal, multiple hedge funds and high-net worth individuals are interested in preferred equity financing. Preferential equity, which is similar to a bond and a loan that pays regular interest, would not only pay a dividend from Twitter but also would increase according to the social media company’s equity value.

By Senad Karaahmetovic