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Elon Musk reveals he had received another $7 billion in funding for his Twitter deal, including Saudi prince who initially rejected his bid
6 May, 2022 / 09:25 am / Twitter

Source: https://me.mashable.com/

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Mashable: A Thursday filing disclosed that Oracle co-founder Larry Ellison, who is also an investor in Tesla, sent the largest check, at $1 billion, the highest amongst the contributors.

Almost two dozen investors, including Sequoia Capital, Andreessen Horowitz, Binance, and Fidelity Asset Management, have contributed over $7.1 billion to support Tesla and SpaceX CEO Elon Musk's $44 billion bid to acquire Twitter.

A Thursday filing disclosed that Oracle co-founder Larry Ellison, who is also an investor in Tesla, sent the largest check, at $1 billion, the highest amongst the contributors. According to the updated 13D filing, Sequoia has invested $800 million, VyCapital $700 million, Binance $500 million, and Andreessen Horowitz $400 million. Interestingly, no one has invested more than $1 billion, and huge private equity firms are still absent from the scene.

Qatar is also among the backers of Musk's new funding.

In addition, Saudi Arabia's Prince Al Waleed bin Talal Al Saud, who had earlier opposed Musk's purchase of Twitter, has agreed to provide approximately 35 million shares of the firm in order to maintain a stake after Musk's acquisition. Some of Tesla's existing shareholders, including Twitter co-founder and former CEO Jack Dorsey, are being approached by Musk to allow them to roll over their shares into the new company.

As a result of the new investment, Morgan Stanley and other banks have reduced Musk's margin loan from $12.5 billion to $6.25 billion. The amount of money he has invested in equities has also climbed to $27.25 billion.

After the story broke, Binance founder Changpeng "CZ" Zhao tweeted that the donation was "a little contribution to the cause." "Privatize it," CZ tweeted after Musk's initial offer to buy Twitter was made last month, adding that the first priority should be reducing spam and scams on Twitter.

According to a Binance spokeswoman, the cryptocurrency exchange is "a backer of Elon Musk's intentions for Twitter and an investment" in the social media company's future.

In order to buy Twitter, Musk will need to secure tens of billions of dollars. This new investment will help alleviate some of that burden. Approximately $8.5 billion worth of Tesla shares were sold by Musk late last month. After the transaction, Tesla's stock price plummeted, leading billionaire Elon Musk to reassure investors that he would not be selling any additional shares.