Home Business Elon Musk is raising $ 7 billion for a deal with Twitter

Elon Musk is raising $ 7 billion for a deal with Twitter


Elon Musk, CEO of Tesla, has raised $ 7 billion to support his deal to buy Twitter for $ 44 billion.

A statement from the Securities and Exchange Commission released on Thursday said Musk had received letters of commitment on shares worth about $ 7.14 billion from a group of 19 investors.

According to the document, the largest contribution was made by the Prince of Saudi Arabia al-Walid bin Talal, who agreed to keep a stake in Twitter worth $ 1.9 billion after the takeover by Musk.

Similarly, Larry Ellison, co-founder of Oracle Corp., a member of Tesla’s board of directors, has agreed to invest $ 1 billion in the deal.

Other people who have agreed to raise money for the deal include $ 500 million from Changoyeng Zhao, a billionaire developer who controls Binance.com, and $ 800 million from venture capitalists Sequoia Capital.

Arms of Asset Management, Fidelity Investments and Brookfield Asset Management Inc. have promised to participate in the fundraiser.

It was reported that this money will reduce the amount that Musk has to borrow under his share of Tesla, and will reduce the balance of money that he has to put personally, to less than $ 20 billion.

Binance.com said his involvement in the fundraiser “as a supporter of Ilona Mask’s plans regarding Twitter and investor”.

Zhao tweeted that the investment was a small contribution to the case, according to a spokesman.

Read also: The price of Twitter jumped 85% before trying to absorb Mask

Musk said he was in talks to attract more current Twitter shareholders, including co-founder Jack Dorsey, to the company after the buyout.

Earlier, Musk told potential investors on Twitter that he could return the company to public markets after several years of ownership.

According to the company, Musk is currently in talks with Twitter co-founder Jack Dorsey to contribute some of his shares to the acquisition, adding that the previously announced margin loan provided under the deal has been reduced to a total principal of $ 6.25 billion from $ 12.5 dollars. billion.

Shares of Twitter were up 4 percent higher in early trading after news of new funding to go from hand to hand at $ 51.10 each, while shares of Tesla fell 2.1 percent to $ 932.75 each, according to the filling .

On April 25, Musk reached a final deal to acquire Twitter for $ 44 billion.

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