Musk Brings in New Investors to Contribute $7 Billion to Twitter Deal


Elon Musk has brought in more than a dozen new investors to help fund his $44 billion acquisition of Twitter, including the billionaire Larry Ellison and the venture capital firm Sequoia Capital, according to securities documents filed Thursday morning.

The investors together will contribute $7 billion to help fund Twitter’s purchase, with the rest coming from Mr. Musk’s own pocket or through loans. Mr. Musk had earlier said that the deal financing would include about $20 billion in equity investments.

The 18 investors listed in Thursday’s filing are a mix of big names such as Fidelity as well as so-called family offices — firms that manage the wealth of billionaires and other rich individuals. Binance, the cryptocurrency exchange, is contributing $500 million, while an entity affiliated with Mr. Ellison, the Oracle co-founder, is investing $1 billion. Sequoia is putting up $800 million, and Qatar Holding, a sovereign wealth fund, is contributing $375 million.

Mr. Musk’s representatives had been canvassing a wide array of investors in recent days, according to two people who received information about a potential investment. Traditional private equity firms had earlier looked at possibly investing in the deal, but were unwilling to invest on the terms being offered.

Mr. Musk had originally he said he was funding the deal with $21 billion in cash, $13 billion in loans from a seven banks and $12.5 billion in a loan against Mr. Musk’s shares in Tesla, the electric vehicle company he runs. As result of the new equity commitments, Mr. Musk said he is reducing the size of that loan against Tesla shares from $12.5 billion to $6.25 billion.

Anupreeta Das contributed reporting.

Source link

Leave A Reply

Your email address will not be published.