The Strategist

Musk fetches $7.14B from investors to buy Twitter

05/06/2022 - 08:48

Elon Musk has received $7.14 billion in funding to buy Twitter from a group of investors including the largest cryptocurrency exchange Binance, Qatar Holding, Tesla board member Larry Ellison and Saudi Prince Al Waleed bin Talal Al Saud, according to the Securities and Exchange Commission (SEC).

Twitter, Inc. had earlier announced an agreement with Musk to buy the company for $44 billion. In explaining his investment, the billionaire noted that he believed in its potential to become a platform for free speech around the world. At the same time, he announced that he was willing to spend his own funds of $21 billion, plus Morgan Stanley Senior Funding and some other financial institutions are willing to provide him with up to $25.5 billion in total funding (with $12.5 billion secured against Tesla shares).

The document states that Elon Musk has received "equity commitment letters" from a number of investors who have pledged to contribute cash to secure this acquisition. The investors include Binance, which will contribute $0.5 billion, and Qatar Holding ($375 million), among others. Tesla board member Larry Ellison will contribute the largest amount in cash - $1 billion.

In addition, Saudi Prince Al Waleed bin Talal Al Saud, who had opposed Musk's offer to buy Twitter, agreed to contribute his share, not in cash but in shares. He has pledged 35,000 shares in Twitter for $54.2 per security (approximately $1.89 billion).