Elon Musk has won the backing of some of the world’s wealthiest investors for his $44 billion takeover of Twitter Inc.
From Oracle Corp’s co-founder Larry Ellison, a self-proclaimed close friend of Musk, to Saudi Arabian investor Prince Alwaleed bin Talal, who had earlier rejected the takeover bid, a clutch of Silicon Valley heavyweights and investors, including backers of Musk’s existing ventures, have now thrown their weight behind the offer.
The commitments include $1 billion from Oracle co-founder Larry Ellison; $400 million from AH Capital Management, a VC firm founded by Marc Andreessen and Ben Horowitz; $800 million from Sequoia Capital; and $500 million from cryptocurrency company Binance.
Vy Capital, which invested in Musk’s The Boring Company, is putting in $700 million; Aliya Capital Partners, a SpaceX investor, is committing $360 million; and DFJ Growth IV Partners, an investor in Tesla, SolarCity, SpaceX, and The Boring Company, is putting in $100 million.
There is also $250 million from the venture capital arm of Brookfield Asset Management, which is its largest cheque cut to date; and $375 million from Qatar’s sovereign wealth fund. Saudi Arabia’s Prince Alwaleed bin Talal has also committed $1.9 billion worth of shares to back Musk’s buyout.
With the additional $7.14 billion in funding from investors, Musk has increased his financing commitment to $27.25 billion, from $21 billion earlier. The margin loan from Morgan Stanley tied to his Tesla stock stands at $6.25 billion, down from the $12.5 billion announced last month.
The original financing package for Twitter included commitments from banks for $13 billion in loans secured against Twitter shares; a $12.5 billion loan against Musk’s shares in Tesla, and $21 billion cash.