Binance, Sequoia and Fidelity Fund Elon Musk’s $44 Billion Twitter Offer

In late April, billionaire Elon Musk rocked the entire market with the announcement that he would buy Twitter for $44 billion. Now the 13D file amended submitted to the US Securities and Exchange Commission, the SEC, shows that giant companies will help finance the purchase of the social network.

According to the document, almost 20 companies will support the purchase. These include cryptocurrency exchange Binance; venture capital firms Sequoia Capital and Andreessen Horowitz; asset management firm Fidelity and several others.

Binance, for example, has committed $500,000,000. For the company’s CEO, Changpeng Zhao, the CZ, this is a “small” contribution:

A small contribution to the cause. https://t.co/xD9XZxOWfL

— CZ 🔶 Binance (@cz_binance) May 5, 2022

Companies back $7.1 billion buyout of Twitter

But the biggest contribution to the business comes from Larry Ellison’s Lawrence J. Ellison Revocable Trust. The Tesla investor will also allocate US$ 1 billion to “support the cause”.

Meanwhile, Fidelity will contribute about $300 million, Sequoia $800 million and Andreessen Horowitz $400 million.

Also according to the document, Saudi billionaire prince Alwaleed Bin Talal Bin Abdulaziz Alsaud also chose to retain 34.9 million shares, subject to certain conditions.

In all, the amount of funding to support the purchase of Twitter exceeds $7 billion.

List of companies that will support Musk’s Twitter offer. Source: SEC

Notably, the massive investment will slightly ease Musk’s burden of buying Twitter, which has yet to raise a few more tens of billions of dollars to complete the deal.

As the billionaire pointed out, as a result of the new investment, the $12.5 billion margin loan he received from Morgan Stanley and other banks was reduced to $6.25 billion. In addition, he increased his total capital commitment to $27.25 billion.

At the same time, Musk continues to negotiate with Jack Dorsey, the co-founder of Twitter and former CEO, who remains a member of the board. Dorsey was one of the supporters of Musk’s takeover of Twitter.

Musk buys Twitter

As reported, in April, Elon Musk made a proposal to pay $54.20 per share through Twitter.

If/when approved, the deal will make Twitter a private company. The transaction is expected to be completed later this year, subject to shareholder and regulatory approval.

Among other things, Musk promises to make the network free of “censorship”. In addition, he said he intends to make the Twitter algorithm open source. Also, he said he will fight spam and bot accounts by checking all users.

It is worth noting that the billionaire is also a well-known supporter of cryptocurrencies, in particular memecoin Dogecoin (DOGE) and Bitcoin (BTC).