Elon Musk gets $7 billion from mega-rich friends to buy Twitter

Elon Musk has slashed his personal stake in a $44 billion takeover of social media giant Twitter with the help of some big names.

Elon Musk has raised $7.14 billion in funding from a group of investors, including Oracle co-founder Larry Ellison, to finance his $44 billion purchase of Twitter.

Musk, the world’s richest person with a net worth valued by Forbes at $265.4 billion, has also received capital commitment letters from investors including Sequoia Capital, Brookfield, Qatar Holding and others, according to securities filings.

The move will help Musk reduce a margin loan against his Tesla stake to $6.25 billion from the previously announced $12.5 billion, the filing revealed.

The Post reported on Wednesday that Musk was closing in on raising $10 billion in cash from equity co-investors, mostly venture capital firms that have backed his other companies, such as SpaceX.

Thursday’s filing listed 19 investors, including billionaire Saudi prince Alwaleed Bin Talal Bin Abdulaziz Al-Saud.

The Saudi royals, who initially rejected Musk’s takeover bid, saying it was too low, are now apparently willing to contribute 35 million of their own Twitter shares, worth $1.9 billion, to retain an investment. once Musk takes the company private, according to documents. .

Ellison, the seventh richest person with a net worth valued at 105.7 billion dollars. is willing to invest $1 billion, while Sequoia has pledged $800 million, the filing shows.

VyCapital ($700 million), cryptocurrency exchange Binance ($500 million), and venture capitalist Andreessen Horowitz ($400 million) have also committed funds.

Musk will continue to hold talks with existing Twitter holders, including former company boss Jack Dorsey, to contribute shares to the proposed acquisition, the filing showed.

Reuters reported last week that Musk was in talks with major investment firms and high-net-worth individuals to secure more financing for his Twitter acquisition and involve less of his wealth in the deal.

On Tuesday, the Wall Street Journal reported that Musk has been telling investors that he intends to take the company public again within three years of the purchase. As The Post previously reported, Thoma Bravo sees an opportunity to cut costs at Twitter and was hoping to land a high-profile deal.

Other senior associates of Thoma Bravo, however, worry that jumping into bed with Musk, who has posted a flurry of sometimes bizarre tweets about his plans for Twitter, including that he plans to turn his San Francisco headquarters into a haven for homeless, it could be a disaster. .

This article was originally published by the New York Post and reproduced with permission.

Read related topics:Elon Musk

Leave a Comment