Larry Ellison and Binance Back Elon Musk for Twitter Buyout
2022.05.05 19:21
Larry Ellison and Binance Back Elon Musk for Twitter Buyout
- The financial support for the purchase of the social network by several companies became known after an SEC filing this week.
- Alison is contributing $1 billion, which makes him one of the largest shareholders, Sequoia $800 million and Binance is putting up others $500 million.
There are a total of 18 capital investors who are supporting Elon Musk in the purchase of Twitter (NYSE:TWTR) for 44 billion dollars, as was known on Thursday after the presentation made by the United States Securities and Exchange Commission (SEC).
Among the group of firms backing the deal to acquire the popular social network is Oracle (NYSE:ORCL) co-founder Larry Ellison, who will invest $1 billion, followed by venture capital company Sequoia with $800 million.
Other investment firms leveraging Musk’s bid include VyCapital, a global technology investment firm that is putting up $700 million, and cryptocurrency exchange Binance that has pledged $500 million.
Also, the company Capital Management AH, LLC that will invest $400 million, Qatar Holding that will contribute $375 million, Fidelity will place another $316 million, while Aliya Capital Partners LLC will participate with $360 million and Brookfield with $250 million.
With this, the billionaire and main shareholder of Tesla (NASDAQ:TSLA) and SpaceX, has secured a total of $7.14 billion to halve the $12.5 billion margin loan he took to close the Twitter purchase deal.
The social network’s majority shareholder, Saudi Prince Alwaleed Bin Talal Abdulaziz Alsaud, who had previously rejected Musk’s initial offer, has pledged to buy a total of 34,948,975 shares of the company worth about $1.7 billion. .
In a tweet posted on April 14, the prince wrote:
I don’t think @Elon Musk’s proposed offer ($54.20) comes close to the intrinsic value of @Twitter given its growth prospects. Being one of Twitter’s largest long-term shareholders, @Kingdom_KHC & I decline this offer.
On The Flipside
- Musk’s subsequent offer of $44,000 for the company led to the final approval of the sale by the board of directors.
- The stock is now trading at a price less than about $50.
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