Elon Musk has bagged $7.14 billion in funding from Oracle billionaire co-founder Larry Ellison, cryptocurrency trade Binance, and Qatar’s sovereign wealth fund, in addition to prime VC agency Sequioa and others, in his quest to amass Twitter.
The world’s richest man could also be value round $250 billion on paper, however he nonetheless wants slightly extra assist from buyers to safe sufficient cash to take over the bird-themed microblogging website. The Twitter board final month accepted Musk’s supply to take the biz non-public at $54.20 per share, a $44 billion deal in impact. The SpaceX supremo promised to safe $21 billion himself whereas the remaining $25.5 billion will likely be footed by Morgan Stanley, Bank of America, Barclays, and others by way of debt financing.
Musk bought $8.4 billion of his personal Tesla shares final week, inflicting its share worth to briefly dip by 12 %. Now, he is cobbled collectively one other $7.1 billion from 18 buyers, starting from VC corporations and asset managers to non-public wealth funds and a cryptocurrency trade, in accordance to an SEC submitting Thursday.
The prime three buyers are Larry Ellison’s Lawrence J. Ellison Revocable Trust, the Oracle co-founder’s non-public fairness fund, which has pledged $1 billion; Sequoia Capital, which is down for $800 million; and Vy Capital, which is investing $700 million. Musk stated he acquired fairness dedication letters from every investor on May 4. Database tycoon Ellison is claimed to be value about $100 billion.
In addition, Musk has made a cope with present Twitter investor, Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, who has agreed to not dump his Twitter inventory. The Saudi royal billionaire initially disparaged the deal however right this moment stated he and Musk had been buddies now, and he was holding his Twitter holdings in place.
Great to attach with you my "new" buddy @elonmusk🤝🏻I consider you'll be a wonderful chief for @Twitter to propel & maximise its nice potential@Kingdom_KHC & I look ahead to roll our ~$1.9bn within the "new" @Twitter and be part of you on this thrilling journey
— الوليد بن طلال (@Alwaleed_Talal) May 5, 2022
Elon has talked usually about his want to make sure Twitter is a haven of free speech for all. Given in Saudi Arabia a social media submit criticizing the Quran can get you 5 years behind bars and 1,000 lashes, we’re certain the web loudmouth and his chum Prince Alwaleed may have lots to debate on their thrilling journey to create this new Twitter.
Musk’s bid to takeover Twitter is not a achieved deal, because it must be accredited by shareholders and regulators. Still, he’s already considering of how to shake up the corporate’s construction and administration in addition to which options so as to add and new methods to monetize tweets.
Rumor has it Musk desires to sack CEO Parag Agrawal, who is predicted to remain till the deal is finalized. It sounds as if the automaker billionaire could not have the right alternative in thoughts, nevertheless, and can due to this fact function short-term CEO till the best particular person comes alongside, CNBC reported. “Once the deal closes, we don’t know which direction the platform will go,” Agrawal reportedly advised workers at a company-wide assembly final month.
Musk beforehand stated he wished to roll out a cryptocurrency funds system, and for Twitter to rely much less on promoting to earn a living, which can additionally imply organizations and governments paying to make use of the location. He additionally desires the platform’s direct messaging service to help end-to-end encryption, and be much less strict in content material moderation. All this will likely be achieved in thoughts with attempting to reportedly take Twitter public inside three years. ®