Saturday, June 10, 2023

Binance Helps Elon Musk’s Twitter Bid


A collection of investors, including Sequoia Capital, Fidelity Group, Binance, Ellison, and others, have banded together to gather money to support Tesla CEO Elon Musk’s $44 billion offer for Twitter.

Improving Twitter

Last month, the Twitter Board of Directors agreed to sell the company to an entity controlled entirely by Elon Musk for $54.20 per share in cash. He is the 50-year-old founder and CEO of Tesla as well as SpaceX, a rocket company. Twitter will become a privately held firm following the deal.

So far, $7.14 billion has been raised, somewhat more than a fourth of the total money required.

Oracle co-founder Larry Ellison, according to a report released on Thursday, gave the largest check, valued at $1 billion. Sequoia has invested $800 million, VyCapital $700 million, Binance $500 million, and Andreessen Horowitz $400 million, according to an amended 13D report. There has been no investment of more than $1 billion, and significant private equity groups have kept mute.

Lowering Loan Margin

Mr. Musk had already guaranteed $33.5 billion to the acquisition in an SEC filing. It consists of $21 billion in cash and $12.5 billion in margin loans.

Mr. Musk will lower the margin loan he has taken with a consortium of lenders by half, to $6.25 billion, with the new financial pledges. The equity investment will be increased to $27.25 billion. Loans from international banks will cover the remainder of the acquisition price.

On the site, there have been several concerns regarding content restrictions and a lack of freedom of expression. Mr. Musk then offered to purchase Twitter. This move has boosted the price of Twitter stock and Dogecoin. Qatar, on the other hand, is one of Musk’s new backers and is infamous for its poor record on freedom of speech.

Prince Al Waleed bin Talal Al Saud of Saudi Arabia has agreed to contribute over 35 million shares in Twitter. This is to keep a share in the company after Musk’s acquisition. Based on Musk’s offer price, this comes to around $1.9 billion.

Mr. Musk’s offer had been rejected by Saudi Prince Al Waleed. It stated that, given Twitter’s growth possibilities, it did not come close to capturing its full worth.

Musk stated that he is in contact with a few more existing stockholders. This includes Jack Dorsey, co-founder of Twitter and former CEO, to see whether they wish to roll their shares over.

Twitter Remains Free

Mr. Musk’s contract is still being negotiated. Except for corporations and governments, he has proposed that the service remain free for casual users.

Mr. Musk may take Twitter public again after acquiring the social media company, according to The Wall Street Journal. He might list Twitter as soon as three years after owning it, according to the media site, citing sources.

The Federal Communications Commission of the United States determined earlier this week that it lacked the ability to intervene in the billionaire’s purchase. Antitrust regulators should welcome the acquisition, according to the research, because it will boost customer choice and freedom.

Rainy Naidoo
Rainy Naidoo
Rainy Naidoo is a writer for Cryptoconstellation. She has her Degree in Journalism and communications. Rainy Likes to spend her free time reading and exploring new places.

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