Elon Musk received $ 7 billion from new investors for the takeover of Twitter for $ 44 billion.

Among the 19 participants supporting the billionaire’s deal are Larry Allison, co-founder of Oracle and a member of Tesla’s $ 1 billion board.

Qatar’s public investment fund is investing $ 375 million, and Binance, the world’s largest cryptocurrency exchange, is providing $ 500 billion, according to a regulatory document.

There used to be some uncertainty as to how MuskCEO of electric vehicle maker Tesla and rocket company SpaceX, will fund planned redemption.

Although he is the richest man in the world, much of his wealth is due to the value of Tesla.

He said he would pay for the deal with a mix of loans, investments and cash.

Musk is expected to use about $ 8 billion recent sale of Tesla sharesas well as $ 13 billion in bank loans.

It also takes loans under its Tesla stocks.

Thanks to the new $ 7 billion commitment, it will be able to reduce its debt from $ 12.5 billion to $ 6.25 billion, according to regulations.

He later said he would no longer sell Tesla shares, whose value had fallen 15% in the past month.

What changes do new investors want to see?

According to a source familiar with the matter, Musk will also become the interim CEO of Twitter after closing the deal.

He is in talks with other people about additional funding, including former Twitter CEO Jack Dorsey.

Mr Dorsey is the second largest individual stakeholder of the technology giant after Mask.

Saudi investor Prince Al-Walid bin Talal has agreed to invest his stake in Twitter of $ 1.77 billion in the deal rather than withdraw it in cash.

He said Musk would be a “great leader” for the site, despite previously being against the buyout.

Image:
Business tycoon Larry Allison is the biggest new investor

Sequoia Capital, the Silicon Valley venture capital giant, will provide $ 800 million, and another $ 700 million comes from VyCapital, an investment group from Dubai.

Binance CEO Changpeng Zhao described his investment as a transition to “Crypto Twitter” and said it was a “small contribution to the cause”.

“We hope to be able to play a role in combining social media and web3 and expanding the use and adoption of crypto and blockchain technology,” he said.

Technology venture capitalist Ben Horowitz said his firm, known as Andreessen Horowitz or a16z, is investing $ 400 million because it believes in “Mask’s brilliance to finally make it what it was meant to be”.

“Although Twitter has great potential as a public space, it suffers from many complex problems, ranging from bots and abuse to censorship,” he said.

“Being a public company that depends only on the advertising business model, it all gets worse.”

There has been a lot of speculation about how Musk could change the platform.

He said “small costs” could be imposed on governments and businesses.

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Why is Elon Musk buying Twitter?

In tweets that were subsequently deleted, Musk suggested changing Twitter’s premium subscription service to Blue, including lowering its cost, banning advertising, and allowing pay in the dogecoin cryptocurrency.

In addition to speaking out against Twitter’s alleged restrictions on free speech, he spoke of wanting new features to improve the user experience as well as increase trust by authenticating all users as human as part of an attempt to crack down on spam bots.

Wedbush analyst Dan Ives said the Mask deal had a 75% chance of closing before new funding, but now the chances of success range from 90% to 95%.

He said the new supporters are a list of investors from Wall Street and Silicon Valley “who’s who” and show “that Musk is not alone trying to turn Twitter.”

If Musk had been forced to withdraw from the deal, he would have received a commission of $ 1 billion.

https://news.sky.com/story/elon-musk-secures-1637bn-from-new-investors-to-pay-for-twitter-takeover-12606201

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