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Elon Musk provides $ 7 billion in external funding to take over Twitter Elon Musk

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Elon Musk has received more than $ 7 billion (£ 5.7 billion) to fund his $ 44 billion Twitter takeover of investor groups, including tech mogul Larry Ellison, Qatar’s state investment fund and the world’s largest cryptocurrency exchange.

This came after CNBC reported that Musk, the world’s richest man and CEO of Tesla, would serve as interim head of the social networking platform for several months. after closing the deal.

Saudi investor Prince Alwaleed bin Talal, who initially opposed the buyout, also agreed to include his $ 1.9 billion stake in the deal rather than cash out. according to the statement with US financial control.

Mask’s plans for funding Twitter the deal put pressure on shares of Tesla, the electric carmaker in which he is the largest shareholder, amid fears it would sell the shares to fund an agreed rate. However, a document released Thursday also shows that the margin loan taken by Mask to finance the deal – backed by its 15.7% stake in Tesla – will be reduced from $ 12.5 billion to $ 6.25 billion.

“In this high-stakes poker game, an impressive list of supporters will get rid of Tesla’s stock more and more as Masca’s leverage becomes less difficult,” said Dan Ives, an analyst at Wedbush Securities, a US financial services firm. Ives added that the report, which Musk planned to launch on Twitter, appears to be affecting Tesla shares, despite news of funding: the carmaker’s shares fell 7% to $ 884.56 in afternoon trading.

According to a statement to the US Securities and Exchange Commission, Allison is investing $ 1 billion in the deal. Allison, who is worth about $ 95 billion, made his fortune as the founder of a database business Oracle. A member of Tesla’s board of directors, he was one of the few top tech executives who openly supported Donald Trump’s presidency, and reportedly organized a fundraiser for the politician in 2020 at his California estate.

According to one expert, raising $ 7.1 billion in capital plus an agreement with Prince Alvalid means Mask’s personal contribution to the share capital deal could be less than $ 20 billion. Including a margin loan, Musk has now cut his total financial liabilities by nearly $ 9 billion.

“Since the deal was announced, Elon has reduced his financial obligations, both direct equity and personal margin loans,” said Drew Pascarello, a senior lecturer in finance at Cornell University in the United States. “Today’s new third-party equity bond – totaling $ 9 billion, including a $ 1.9 billion extension of Price Alwaleed shares – reduces Ilona’s total liability from $ 33.5 billion to $ 24.6 billion.”

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Tesla’s CEO will continue talks with existing Twitter shareholders, including co-founder Jack Dorsey, who has the second-largest individual stake in the company after Mask, about contributing shares to the proposed acquisition, the statement said. Musk owns 9.6% of Twitter.

Along with Allison, co-investors included Sequoia Capital, a U.S. venture capital fund that promised $ 800 million, and Dubai-based company Vy Capital, which pledged $ 700 million, according to an SEC statement. Qatar Holding, which is part of the Qatar Investment Authority, is contributing $ 375 million to the deal, and Binance, the world’s largest cryptocurrency trading platform, is contributing $ 500 million.

Current Twitter CEO Parag Agraval was in office just a few months later imitating Dorsey last November.

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