Tuesday, May 17, 2022
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Tech ObserverNewsIndustryElon Musk moves strength to strength to secure funding for Twitter takeover, $7 billion already in kitty

Elon Musk moves strength to strength to secure funding for Twitter takeover, $7 billion already in kitty

So far Musk has secured commitments of more than $7 billion from a range of investors, including Silicon Valley heavy hitters like Oracle co-founder Larry Ellison.

So far Musk has secured commitments of more than $7 billion from a range of investors, including Silicon Valley heavy hitters like Oracle co-founder Larry Ellison.

Billionaire is moving from strength to strength in securing the funding for his over $4o billion deal to buy out social microblogging site .

According to the latest reports, Musk has secured commitments of more than $7 billion from a range of investors, including Silicon Valley heavy hitters like Oracle co-founder Larry Ellison.

Other investors include Sequoia Capital Fund, which pledged $800 million, and VyCapital, which pledged $700 million, according to a filing with the US Securities and Exchange Commission.

But Ellison, who is also a Tesla board member, is making the biggest contribution, pegged at $1 billion. Saudi Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud has pledged $35 million in Twitter shares in support of Musk, according to the filing.

Musk in earlier regulatory filings revealed that he has sold roughly $8.5 billion worth of shares in Tesla to help fund the purchase. Musk later tweeted that he doesn’t plan any further sales of the company’s shares, meaning he would need outside commitments to help fund the $44 billion deal.

Due to new funding listed in the SEC filing, Musk will cut the $12.5 billion in margin loans he was leaning on in half, to $6.25 billion. The transaction is also now being funded by $27.25 billion in cash and equities, up from $21 billion.

The recent filing also said that Musk is in ongoing talks with other parties including former Twitter CEO Jack Dorsey, who is the second-largest individual stakeholder in the company after Musk.

“This was a smart financial and strategic move by Musk that will be well received across the board and also shows the Twitter deal is now on a glide path to get done by the end of this year,” wrote analyst Dan Ives who follows Twitter for Wedbush.

Meanwhile, shares of Twitter have remained below the per-share offering bid by Musk of $54.20 because there are still doubts on Wall Street about whether the deal will go through.

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