Billionaire Elon Musk has raised $7.14 billion in funding from a group of investors, including Larry Ellison, co-founder of Oracle Corp, and Sequoia Capital; To finance its acquisition of Twitter for $44 billion, according to a disclosure today, Thursday, May 5, 2022, according to Reuters.
The disclosure showed that Saudi billionaire Prince Alwaleed bin Talal also agreed to transfer his $1.89 billion stake to the deal rather than sell it for money, although he initially opposed the purchase offer.
The move comes as Musk’s margin loans were cut to $6.25 billion from the $12.5 billion previously announced, according to the disclosure.
Musk’s financing commitment of $21 billion was also revised to $27.25 billion.
The disclosure indicated that Musk will continue to hold talks with existing Twitter shareholders, such as former company president Jack Dorsey, to contribute shares to the acquisition.
Also among the group of investors is Qatar Holding and Dubai-based VW Capital, which is also investing in another Musk project, The Boring Company, which means boring company.
And last week, Reuters reported that Musk was in talks with large investment firms and wealthy people about obtaining more funding for his acquisition of Twitter and reducing his money in the deal.
Larry Ellison, a Tesla board member who describes himself as a close friend of Musk, has committed $1 billion in funding.
Mask is threatened with a fine
And two days ago, informed sources reported that Elon Musk is in talks with large investment companies and high-ranking wealthy people about bringing more funding to his $44 billion acquisition of Twitter and linking less than his wealth to the deal.
And according to what was reported by Reuters, Tuesday, May 3, 2022, Musk, who is considered the richest in the world; Forbes estimates his net worth at $245 billion, and he threatens to pay a heavy fine if he fails to complete the Twitter acquisition.
But most of Elon Musk’s fortune is tied to shares in Tesla, the electric car maker that he heads. Last week, Musk announced that he had sold $8.5 billion worth of Tesla shares in the wake of his agreement to buy Twitter.
The sources also told Reuters that the new funding, which could come in the form of preferred or common stock, could reduce a cash contribution of $21 billion that Musk pledged to pay in the deal, as well as a marginal loan he took out against his Tesla shares.
Musk pledged to give some Tesla shares to banks to arrange a $12.5 billion margin loan to support financing the deal. One of the sources stated that he might seek to reduce the size of the marginal loan based on new investors’ interest in financing the deal.