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For Musk's acquisition of Twitter, capital showed strong interest.
On May 5, local time, a document submitted by Twitter to the U.S. Securities and Exchange Commission (SEC) showed that Musk received another $7.139 billion in financing commitments to acquire Twitter, and the total amount of financing commitments has increased to $27.25 billion.
New investors include Oracle co-founder Larry Ellison, cryptocurrency exchange Binance, asset manager Fidelity, Brookfield (BAM), as well as Sequoia Capital, A16z, and others.
A further $7.1 billion in financing commitments were made
On May 5, local time, Twitter disclosed the latest 13D documents on the official website of the SEC. Tesla CEO Musk received an additional $7.139 billion in financing commitments to fund a $44 billion Twitter acquisition, according to the documents.
Details of the latest financing commitments
Source: SEC website
Oracle co-founder Larry Ellison invested $1 billion through the Lawrence J. Ellison Revocable Trust Trust, the highest amount among the latest investors, the filings show. Sequoia Capital invested $800 million, VyCapital invested $700 million, and Binance invested $500 million.
Binance CEO Zhao Changpeng said on the social platform on the same day, "This is a small contribution to this transaction." And then turned a series of reports about Musk's acquisition of Twitter.
As a result of this new investment, Musk's $12.5 billion margin loans from Morgan Stanley and other banks have fallen to $6.25 billion, and the total amount of its financing commitments has increased to $27.25 billion, according to the filing.
The documents also show that Saudi Arabian Prince Al Waleed bin Talal Al Saud, who previously rejected the acquisition proposal because "Musk underestimated the value of Twitter," promised to provide nearly 35 million shares of Twitter stock to preserve the company's stake after it was acquired by Musk. Musk said he is engaging with certain other existing shareholders, including Twitter co-founder and former CEO Jack Dorsey, to give them the option to roll over their stakes.
Musk is expected to serve as Twitter's interim CEO
According to media reports, sources said Musk is expected to serve as the interim CEO of Twitter after the completion of the transaction to acquire Twitter.
Previously, the media has repeatedly reported that Musk will make personnel adjustments to Twitter.
According to sources, Musk had told Twitter chairman Bret Taylor that he had no confidence in the company's management. The source said Twitter's current CEO, Parag Agrawal, will remain on until the acquisition is completed. Parag Agrawal once stated at the company's plenary meeting that "under Musk's leadership, the future of Twitter is uncertain."
In addition to the CEO candidate, Twitter's board of directors may also undergo no small changes.
Musk told banks that agreed to fund its acquisition of U.S. social networking platform Twitter that he could cut compensation for the company's executives and board members to slash operating costs and would develop new ways to make money for Twitter.
In terms of Twitter's features, Musk wants Twitter's private message function to be encrypted throughout the process. Musk recently posted on social platforms that Twitter's private messages should be encrypted like Signal to avoid anyone spying on or hacking into his messages.
Microsoft co-founder Bill Gates said at a meeting on May 4 local time that he was unsure of Musk's motivation to acquire Twitter and believed that social media must play a role in curbing the spread of disinformation. Speaking about Musk's potential impact on Twitter, Gates said, "He could actually make the situation worse." But he also acknowledges that Musk has had little record of failure in the past.
One of Tesla's major shareholders:
Musk will get about 3 times the return in the next few years
According to media reports, Barron Capital CEO and one of Tesla's largest shareholders, Ron Barron, directly called out on May 5 local time that Musk acquired Twitter at an "incredibly low price" and will get about 3 times the return in the next few years.
But previously, Barron had been skeptical of Musk's acquisition of Twitter, calling it "pointless." After a brief initial investigation, it found that "this plan is interesting".
In Musk's latest $7.139 billion financing commitment disclosed on the same day, Barron Capital's subsidiary BAMCO promised $100 million.
It is reported that on April 25, local time, Twitter announced that it accepted Musk's acquisition agreement. Under the agreement, Musk will buy Twitter for $54.20 per share, totaling about $44 billion.
As of the close of trading on May 5, local time, Twitter was up 2.75%, and the latest share price was $50.41, and the latest total market value was $38.52 billion.
Source: Flush
Edit: Yu Hongbo