How Much Does Musk get Extra for Twitter Bid from Tech?
Elon Musk, a Billionaire, has stepped up his stock bid to buy Twitter. More than $7 billion from investors, including heavy performers in Silicon Valley, Such as Larry Ellison, co-founder of Oracle. A statement Thursday said Musk was in ongoing talks with other parties, including the former CEO of Twitter, the second-largest individual stakeholder in the company after Musk.
Other investors include the Sequoia Capital Fund, which has pledged $800 million. VyCapital, which pledged $700 million; Thursday’s filing with the U.S. Securities and Exchange Commission. However, Ellison, also a board member of Tesla, makes the most significant contribution of $1 billion. Ben Horowitz, a technology venture capitalist, said his firm, known as a16z, is investing $400 million because he believes in Musk’s brilliance.
While Twitter has excellent promise as a public square, it faces many complex issues, starting with bots and ending with censorship. This is exacerbated for a public company that relies solely on the advertising business model. The Prince of Saudi Arabia has pledged 35 million Twitter shares in support of Musk.
Musk and Twitter Plans
Musk revealed in earlier regulatory documents that he had sold about $8.5 billion worth of shares to Tesla to finance the acquisition. Elon later wrote on Twitter that he had no plans to sell the company’s shares further. It will need $44 billion in external commitments to fund it.
Because of the new funding listed in the SEC submission on Thursday, Musk will halve $12.5 billion in debt on his Tesla shares, About $6.25 billion. The transaction is now funded with $27.25 billion, With cash and stocks worth $21 billion.
Shares of Twitter remained at $54.20 per share offered by Musk. There are still doubts whether the deal will be executed on Wall Street. A new round of financing has brought Tesla’s share price closer to what Musk pays; The stock jumped nearly 4percentt to $50.85 on the opening call.
Analysts estimate that an impressive list of supporters will remove Tesla shares; Because the leverage of Musk shares is now becoming less tiring. Elon’s intelligent financial and strategic move; shows that the Twitter deal is now on the final track.
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