Elon Musk secures $7.1B in new funding for Twitter acquisition
Oracle co-founder Larry Ellison, Binance, Fidelity among those backing $44B deal
Dark money groups against Musk
FOX Business’ Kelly O’Grady discusses dark money groups pushing for advertisers to boycott Twitter if censorship rules change.
Tesla CEO Elon Musk secured $7.1 billion in new commitments from more than a dozen investors to help finance his $44 billion acquisition of Twitter, according to a Thursday filing with the Securities and Exchange Commission.
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ELON MUSK CHALLENGES BILLIONAIRES, POLS FUNDING GROUPS ATTACKING HIS TWITTER BUY
Oracle co-founder and Tesla board member Larry Ellison has committed $1 billion, becoming Musk's biggest private equity partner for the deal.
Oracle co-founder and Tesla board member Larry Ellison has committed $1 billion, becoming Musk's biggest private equity partner. (Reuters/Robert Galbraith / Reuters Photos)
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Other contributions include $800 million from venture capital firm Sequoia Capital, $700 million from VyCapital, $500 million from cryptocurrency exchange Binance, $400 million from Andreesen Horowitz Capital Management, $375 million from Qatar, approximately $316 million from Fidelity, and $250 million from Brookfield Asset Management.
In addition, Saudi Prince Alwaleed Bin Talal Bin Alsaud has agreed to retain his 34,948,975 Twitter shares, worth approximately $1.9 billion, after previously saying Musk's $54.20 per share offer did not come close to the "intrinsic value" of Twitter.
"I believe you will be an excellent leader for Twitter to propel and maximize its great potential," Alsaud tweeted on Thursday.
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As a result of the new commitments, Musk's margin loan financing has been reduced from $12.5 billion to $6.25 billion, while his equity financing has increased from $21 billion to $27.25 billion.
The filing emphasizes that Musk is seeking and may receive additional financing commitments for the acquisition. Musk is currently in discussions with existing shareholders of Twitter common stock, including co-founder Jack Dorsey, regarding "the possibility of contributing such shares of Common Stock to Parent, at or immediately prior to the closing of the Merger, in order to retain an equity investment in Twitter following completion of the Merger."
The deal is expected to close in 2022, subject to the approval of Twitter stockholders, the receipt of applicable regulatory approvals and the satisfaction of other customary closing conditions.