Elon Musk receives outside funding worth $7 billion to acquire Twitter

Elon Musk has investors such as venture capital firm Sequoia, Binance (a crypto exchange platform), and co-founder of Oracle Larry Ellison, who want to invest in his takeover of Twitter. Reports suggest that Musk has successfully secured $7.14 billion in totality.

Ellison, the multibillionaire, is the largest investor with $1 billion, while Sequoia would invest $800 million. Elon Musk loves crypto, and Binance has surely benefited from that. Binance would be investing $500 million in the takeover.

Qatar Holding is another firm that would be backing Musk and contributing $375 million. On the other hand, Fidelity has promised $316 million. These fundings will help cut the loan margin he undertook from $12.5 to $6.25 billion.


Alwaleed Bin Talal Abdulaziz Alsaud is a Saudi Prince and already a Twitter investor who said no to Musk's deal initially but has now promised to purchase 34,948,975 shares amounting to $1.7 billion.

The Saudi Prince stated that Musk's bid is close to the company's intrinsic value due to its prospects for growth. The deal is around $54.20 for each share.

Musk stated that he has already secured $46.5 billion for his takeover. He revealed that he sold shares amounting to about $8.5 billion in Tesla as a stepping stone to purchasing Twitter. He tweeted later on that there is no other plan of selling any more of his Tesla shares. This means that he would require funding from outside sources to fund the purchase. The transaction will now be $27.23 billion in cash and equities.

The second-largest individual stakeholder, Jack Dorsey, the former CEO of Twitter, is also talking with Elon Musk. Analyst Dan Ives believes that the move is a smart strategic and financial move and would be received well. He also thinks that the deal will completely materialize by the end of 2022.

The current share price of Twitter is below what Elon Musk is offering to buy them at because there are doubts that the deal might not go through.