A consortium of 19 investors including Sequoia Capital, Andreessen Horowitz and Binance are backing new Twitter CEO Elon Ma SK to acquire social media platform for $44 million.
Musk surged his funding commitment to $27.25 billion, reducing Morgan Stanley’s margin loan to $6.25 billion from $12.5 billion previously, according to a Reuters report.
A roster of VCs and funds has reportedly allocated about $7.1 billion for the deal, with the Lawrence Ellison Revocable Trust having a maximum commitment of $1 billion. Oracle co-founder Larry Ellison was also named to Tesla’s advisory board in 2018.
Saudi Arabia’s Prince Alwaleed bin Talal, who had previously opposed the deal on Twitter, is also preparing to contribute 35 million shares ($1.9 billion) in the acquisition.
Binance also earmarked $500 million to fund the bid.
However, Binance CEO Changpeng Zhao also expressed his desire to merge Twitter and Web3 during the transaction.
“We hope to play a role in bringing social media and web3 together and expanding the use and adoption of crypto and blockchain technology,” CZ said in a recent statement.
In an earlier interview with Bloomberg TV, CZ had said that Binance would invest in any “strong business with existing users, existing models” that would help enable other currencies through Web3, blockchain and cryptocurrencies ization model.
What changes can be expected in the Twitter space?
With the acquisition expected to close later this year, Twitter’s leadership is also expected to change. Sources close to Twitter told Reuters on Thursday that Musk is expected to take the interim role as CEO after the deal, replacing current Twitter CEO Parag Agrawal.
For now, Musk has been proposing a series of changes to the platform, including adding a “slight cost” for commercial/government users.
Twitter’s advertisers are also reportedly keeping a close eye on the business and how it’s growing with a new owner.
While there have been reports of ad losses on the platform yet, advertisers are curiously awaiting the update.
“[Musk is] It’s like the specter of the future of Christmas hangs over the whole thing,” Mark DiMassimo, founder of ad agency DiMassimo Goldstein, said of the platform’s ad display. “Anything [Twitter] That said, what everyone really wants to know is what the future holds. “
Can Musk pull out of the deal?
While Musk is ready to remove content moderation and provide “absolute” freedom of speech on the platform when he takes over, there is another possibility.
What if he backs out of the deal?
According to Reuters, the Tesla CEO will pay Twitter a $1 billion termination fee if he decides to walk away from the ongoing deal. Additionally, the platform could sue Musk for violating the terms of the current agreement.
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