Elon Musk rolls in new investors to fund Twitter deal – SEC filing

BINANCE, one of the world’s largest crypto exchanges has joined a cohort of 18 investors that plan to support Elon Musk’s $44 billion bid to complete the takeover of Twitter.

This was disclosed by the United States Securities and Exchange Commission (SEC) filing published on Thursday, which shows that Musk has secured a total of $7.14 billion.

Other co-investors involved in the acquisition include major crypto industry players like Sequoia Capital Fund and Fidelity Management and Research Company.


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Musk had said that he would fund the deal in part with a $12.5 billion loan against his shares in Tesla, the electric vehicle company he runs.

As a result of the new equity commitments, Musk said he was reducing the size of that loan against Tesla shares to $6.25 billion from $12.5 billion.

Other major investors are Larry Ellison, the Oracle co-founder, who is investing $1 billion, Sequoia has pledged $800 million and Qatar Holding, a sovereign wealth fund, is contributing $375 million.

Saudi Prince Alwaleed Bin Talal Abdulaziz Alsaud, who is already an investor in Twitter, has pledged to buy 34,948,975 shares, worth around $1.7 billion.

The Prince said on April 14 that Musk’s bid for Twitter, which works out at $54.20 per share, comes close to the “intrinsic value” of the company given its “growth prospects.”






     

     

    The new funds will give investors confidence that the deal will close, as a number of investors are betting against the likelihood, given the amount of capital that Musk may personally be on the hook for, along with his unpredictable nature.

    The deal is not set to close for three to six months, and Musk must pay a $1 billion breakup fee if his financing falls apart.

    Twitter’s stock is currently trading at around $50 per stock.

    The Tesla CEO had suggested that Twitter get rid of advertising, have an open-source algorithm and do more to emphasise free speech principles, among other changes.

    Amos Abba is a journalist with the International Center for Investigative Reporting, ICIR, who believes that courageous investigative reporting is the key to social justice and accountability in the society.

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