Musk secures over $7-bn funding in new financing for Twitter buy
Expected to serve as temporary Twitter CEO
Elon Musk has secured about $7.1 billion of new financing commitments for his proposed $44 billion takeover of Twitter, winning the backing of some of the world’s largest investors.
He was also expected to serve as temporary chief executive officer of Twitter for a few months after he completes the deal, CNBC reported on Thursday.
The equity commitments come as the Tesla billionaire marshals capital to bankroll one of the biggest tech industry takeovers. The investors named in the filing on Thursday include crypto exchange Binance, Brookfield Asset Management, Fidelity Management & Research, and Qatar Holding.
Musk has also won the support of fellow entrepreneur and Oracle co-founder Larry Ellison, who has a big stake in Tesla and a seat on its board. Ellison’s trust has committed $1 billion to finance Musk’s takeover.
Twitter shares rose 3.63 per cent in intraday trade.
The world’s wealthiest person reached an agreement on April 25 to acquire Twitter using a financing plan that’s alarmed some Tesla investors. In addition to pledging tens of billions of dollars worth of his Tesla shares to support margin loans, Musk vowed to line up some $21 billion worth of equity. That number has risen to $27.25 billion, according to Thursday’s filing.
Saudi Prince Alwaleed bin Talal, chairman of the board at Kingdom Holding Company and one of Twitter’s largest backers, has agreed to commit almost 35 million shares in Twitter — worth $1.9 billion — to retain a stake in the company following Musk’s takeover.
He previously rejected Musk’s bid, stating that it failed to come “close to the intrinsic value of Twitter.” Musk is also in discussions with Twitter co-founder Jack Dorsey on contributing some of his shares toward the acquisition.
Musk’s latest backers includes a bevy of traditional asset managers, venture capital firms, boutique hedge funds, and one of the world’s largest pools of capital. Qatar Holding, a unit of the nation’s wealth fund, has agreed to commit $375 million.
Silicon Valley venture capitalist Marc Andreessen, who has publicly feuded with Dorsey on Twitter, has agreed to commit $400 million via his fund A16Z. Fellow venture firm Sequoia Capital is putting up double that, with $800 million.
Smaller investors include Witkoff Capital, the real estatebacked family office, and Cartenna Capital, a hedge fund set up by Peter Avellone, a former Millennium Management portfolio manager.
“I believe you will be an excellent leader for @Twitter to propel & maximise its great potential. @Kingdom_khc & I look forward to roll our ~$1.9bn in the “new” @Twitter and join you on this exciting journey”
PRINCE ALWALEED BIN TALAL,
Chairman, Kingdom Holding