Elon Musk has managed to reduce his margin loan from the original $12.5 billion against his stake in Tesla to $6.25 billion, thanks to a few generous investors who support the mogul’s takeover of Twitter.
The New York Times reports that Musk secured $7.14 billion in funding from a coterie of investors including Oracle’s co-founder Larry Ellison to fund the $44 billion deal.
Musk, who is the world’s richest person, currently holds a net worth of about $265.4 billion.
He also reportedly received equity commitment letters from investors such as Sequoia Capital, Brookfield, Qatar Holding, and others.
According to security filings on Thursday, 19 investors, including billionaire Saudi Prince Alwaleed Bin Talal Bin Abdulaziz Al-Saud, have pledged funds.
The Saudi royal had initially rejected Musk’s takeover bid, but the Prince has seemingly had a change of heart and is now apparently willing to contribute 35 million of his own Twitter shares — worth $1.9 billion — to retain an investment once Musk takes the firm private, according to filings.
Ellison, the seventh richest person with a net worth valued at $105.7 billion, is willing to invest $1 billion, while Sequoia has pledged $800 million, the filing shows.
VyCapital ($700 million), cryptocurrency exchange firm Binance ($500 million), and venture capitalist Andreessen Horowitz ($400 million) have also committed funds.
Musk will continue to hold talks with existing holders of Twitter, including the company’s former chief Jack Dorsey, to contribute shares to the proposed acquisition.
On Tuesday, the Wall Street Journal reported that Musk has been telling investors he aims to take the company public again within three years of the buyout.
Twitter will always be free for casual users, but maybe a slight cost for commercial/government users— Elon Musk (@elonmusk) May 3, 2022
Compiled by Narissa Subramoney
NOW READ: Elon Musk a spoilt brat who doesn’t care about SA as he plays with new Twitter toy