Elon Musk Raises Over $ 7 Billion to Fund Twitter Acquisition-2022 May 5, 17:28

Elon Musk (AFP / Angela Weiss) arrives at Met Gala in New York on May 2, 2022

Elon Musk (AFP / Angela Weiss) arrives at Met Gala in New York on May 2, 2022

Elon Musk claims to have secured $ 7.14 billion in funding for the acquisition of Twitter, with Oracle co-founder Larry Ellison and Saudi prince and businessman Al Waleed bin Talal as investors I mentioned it.

In a document sent to US stock market police on Wednesday, SEC, Tesla and SpaceX bosses have nominated a total of 19 investors who have agreed to contribute to the acquisition of social networks.

Billions of Larry Ellison, co-founding computer giant Oracle and on Tesla’s board, will bring $ 1 billion.

Investment funds Sequoia Capital ($ 800 million) and Vy Capital ($ 700 million), as well as the Binance cryptocurrency exchange platform ($ 500 million) are also key contributors.

Prince Ben Talal will be able to use nearly 35 million shares of his Twitter stock once the acquisition is complete to hold shares in the capital of the company Musk wants to withdraw from the New York Stock Exchange. To

That’s about $ 1.9 billion at the $ 54.20 per share purchase price proposed by Tesla’s boss.

Saudi Arabian investors initially thought Musk’s proposal was too low compared to “the intrinsic value of Twitter.”

Prince Bintalal tweeted Thursday in response to a post from the Tesla boss in mid-April. “I think Twitter will be a great leader in promoting and maximizing that immense potential,” he added.

These financial contributions allow South African entrepreneurs and the wealthiest men in the world to reduce margin loans with Morgan Stanley and other financial institutions from 12.5 billion to 6.25 billion. increase.

Margin loans allow borrowers to increase their credit by pledged assets as collateral. In the case of Mr. Musk, it’s his Tesla stock.

At the same time, the share of the stock and cash acquisition of Twitter, funded by Mr. Musk and the list of investors, will increase from the previous $ 21 billion to $ 27.25 billion.

Musk also told the SEC that he continues to look for other sources of funding from Twitter shareholders, including platform founder and former boss Jack Dorsey.

For Dan Ives and John Katsingris of Wedbush Securities, this new development is “Mr. Musk’s wise and strategic financial decision, welcomed at all levels and demonstrating that Twitter’s acquisition is on track. end”.

In addition, according to information from CNBC, Elon Musk is expected to serve as Twitter’s interim CEO for several months after the acquisition is complete.

If this scenario occurs, he will replace Paraguagrawar, who led the company from November and became his successor after Jack Dorsey left.

In a question from AFP, Twitter refused to confirm this information. Tesla did not respond to the request from AFP as part of it.

On Wall Street, Twitter action rose 3.8% to $ 50.91 at the start of the session, but below the $ 54.20 purchase price proposed by Elon Musk.