Financial Associated Press, May 5 (Editor Hao Zhao) According to Elon Musk's May 4 filing with the U.S. Securities and Exchange Commission (SEC) Form 13D, a total of 18 companies participated in the $7.1 billion financing commitment.
Among them was Lawrence M. The Lawrence J. Ellison Revocable Trust, Sequoia Capital Fund, L.P., Dubai venture capital firm Vy Capital, cryptocurrency exchange Binance, and others.
(Source: SEC)
Billionaire and software company Oracle co-founder Larry Ellison contributed $1 billion of the $7.1 billion, making him the largest investor in the table. Ellison has said he is "very close friends" with Musk and joined Tesla's board of directors in December 2018.
Larry Ellison
Binance also offered a $500 million equity pledge, and Binance CEO Changpeng Zhao said "this is a small contribution to the deal." Crypto venture capitalist a16z was also involved in $400 million, and co-founder Ben Horowitz tweeted that Musk is the only person in the world with the courage, talent and ability to solve all problems and build the ideal community.
Some previously less optimistic about the takeover of Twitter have also recently reversed. Ron Baron, founder of Baron Capital, one of Tesla's major shareholders, told the media on Thursday that Musk got a decent deal, "If successful, I guess there will be 2-3x or more returns in the next 4-5 years." ”
BAMCO, Inc., a subsidiary of Barron Capital Management, also pledged $100 million to fund the acquisition. Barron had previously said the takeover was "meaningless".
The Twitter acquisition is getting smoother?
Late last month, Twitter's board of directors reached a definitive agreement with Musk: Musk will wholly acquire Twitter for $54.20 per share, totaling about $44 billion in cash. After the transaction is completed, Twitter will be turned into a privately held company.
According to Musk's filing with the SEC, he has received about $46.5 billion in financing debt commitments: Financial institutions have pledged $13 billion in debt financing and $12.5 billion in margin loans, and Musk has committed to about $21 billion in equity financing.
While the world's richest man is sitting on a fortune of about $256 billion, the main form of his assets is still a stake in electric car maker Tesla. After dumping Tesla stock to cash out more than $8.5 billion, the stock fell more than $100 last week. As of press time, Tesla is reporting $882 per share.
To ease the burden of funding in the merger and acquisition and the pressure on Tesla's stock price, Musk negotiated with the investment firm for new financing. He is also in the process of convincing Twitter's existing shareholders, including Jack Dorsey, to back his privatization proposal and continue to retain his stake.
Judging from the current situation, it seems that it is going relatively smoothly. Saudi Prince Alwaleed Bin Talal Abdulaziz Alsaud, the majority shareholder of Twitter who initially rejected Musk's offer, also promised in the filing that it would retain about $1.7 billion worth of 34,948,975 shares of Twitter stock after the merger, rather than receiving the purchase price in the merger.
(Source: SEC)