Thursday, March 23, 2023

Musk receives $7B backing for Twitter bid from tech heavyweights

Billionaire Elon Musk has solidified the equity stake of his proposal to buy Twitter with commitments of more than $7 billion from a range of investors, including Silicon Valley heavy hitters such as Oracle co-founder Larry Ellison.

Other investors include Sequoia Capital Fund, which pledged $800 million, and VyCapital, which pledged $700 million, according to Thursday’s filing with the US Securities and Exchange Commission. But Ellison, who is also a member of Tesla’s board, is making the biggest contribution, estimated at $1 billion.

According to the filing, Saudi Prince Alwaleed bin Talal bin Abdulaziz Alsaud has pledged 35 million shares in Twitter shares in support of Musk.

Musk disclosed in an earlier regulatory filing that he sold about $8.5 billion worth of shares in Tesla to help fund the buyout. Musk later tweeted that he had no plans to sell shares of the company further, meaning he would need outside commitments to help land the $44 billion deal.

Because of the new funding, listed in an SEC filing on Thursday, Musk will cut $12.5 billion in margin debt, which he will bend in half, to $6.25 billion. The transaction is now being funded from $21 billion to $27.25 billion in cash and equity.

Thursday’s filing also said that Musk is in 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 that the Twitter deal is now on a great path to completion by the end of this year,” Twitter followed. wrote analyst Dan Ives. Wedbush.

Shares of Twitter Inc remained below Musk’s $54.20 per-share offering bid as Wall Street still doubts whether the deal will work out.

Shares of the San Francisco social media platform rose 2% to $50.10 ahead of the opening bell.

This article is republished from – Voa News – Read the – original article.

Nation World News Desk
Nation World News Desk
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