18 companies have agreed to fund the acquisition of Twitter by Elon with a $7.139 Billion investment boost, according to a May 4 Schedule 13D filing with the Securities and Exchange Commission. For an individual or group that has over 5% of a company’s equity then it is mandatory for them to fill out a Schedule 13D form.
The filing also states that it has already got commitment letters regarding the proposed $44B acquisition of Twitter, “according to the Merger Agreement from the equity investors.”
Major Firms Who Made The Investment
Binance was the only crypto exchange to invest in the firm with a $500 million equity commitment among the list of investors. Sequoia Capital and Fidelity Management & Research Company LLC were other firms in the crypto industry to set apart 800 million and $316.1 million respectively.
Famously called Andreessen Horowitz (a16z), AH Capital Management, L.L.C., also provided $400 million for the cause with a list of other conventional venture capital firms added to the list.
Besides, Prince Al Waleed bin Talal of Saudi Arabia, who is a major shareholder of Twitter agreed to buy 34.94 million shares immediately or before the closing of the Merger.
Morgan Stanley, who previously agreed to give a loan of around $12.5 billion for funding the acquisition, has reduced the loan to around $6.25 billion.
Changpeng Zhao (“CZ”), CEO of Binance, called Binance’s investment a “small contribution to the cause”, after the reveal.
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Musk Acquiring Twitter
Tesla CEO Elon Musk has strictly criticized Twitter’s censorship and spambots issues. Musk first started showing interest to own the social media platform by first acquiring a 9.2% stake in the company in April.
But later Musk only received a “poison pill” from the board of directors at Twitter when he offered to acquire the platform. However, he later was given a green light on April 25 after he offered to buy the platform for $54.20 per share.
CZ, CEO of Binance advises to “privatize it, issue a token and decentralize it,” adding that Musk’s first focus should be on curbing scams and spams on the platform.
Former CEO of Twitter, Jack Dorsey also hailed Musk’s acquisition with others including Mark Cuban suggesting an interesting plan to remove spammers using DOGE.
As per the reports, the Tesla boss will hold the CEO position at Twitter once the acquisition is completed which is expected before year-end.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2022/05/07/crypto-connection-lend-over-1-3-billion-to-support-twitter-deal-of-doge-father-elon-musk/