Musk gets seven billion dollar backing for Twitter bid from tech heavyweights

5 May 2022, 14:04

Elon Musk
2022 MET Museum Costume Institute Benefit Gala. Picture: PA

Mr Ellison, who is also a Tesla board member, is making the biggest contribution, pegged at one billion dollars (£807.5 million).

Billionaire Elon Musk has strengthened the equity stake of his offer to buy Twitter with commitments of more than 7 billion US dollars (£5.65 billion) from a range of investors, including Silicon Valley heavy hitters like Oracle co-founder Larry Ellison.

Other investors include Sequoia Capital Fund, which pledged 800 million dollars (£646 million), and VyCapital, which pledged 700 million dollars (£565 million), according to a Thursday filing with the US Securities and Exchange Commission (SEC).

But Mr Ellison, who is also a Tesla board member, is making the biggest contribution, pegged at one billion dollars (£807.5 million).

Saudi Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud has pledged 35 million dollars (£28 million) in Twitter shares in support of Musk, according to the filing.

Musk in earlier regulatory filings revealed that he has sold roughly 8.5 billion dollars (£6.9 billion) of shares in Tesla to help fund the purchase.

He later tweeted that he does not plan any further sales of the company’s shares, meaning he would need outside commitments to help fund the 44 billion dollar (£35.5 billion) deal.

Because of the new funding listed in the SEC filing on Thursday, Musk will half the 12.5 billion dollars (£10.1 billion) in margin loans he was leaning on to 6.25 billion dollars (£5.05 billion).

The transaction is now also being funded by 27.25 billion dollars (£22 billion) in cash and equities, up from 21 billion dollars (£16.7 billion).

The Thursday filing also said that Musk is in ongoing talks with other parties including former Twitter CEO Jack Dorsey, who is the second largest individual stakeholder in the company after Musk.

“This was a smart financial and strategic move by Musk that will be well received across the board and also shows the Twitter deal is now on a glide path to get done by the end of this year,” wrote analyst Dan Ives who follows Twitter for Wedbush.

Shares of Twitter have remained below the per-share offering bid by Musk of 54.20 dollars (£43.77) because there are still doubts on Wall Street about whether the deal will go through.

Shares of the San Francisco social media platform rose 2% before the opening bell, to 50.10 dollars (£40.46).

By Press Association

More Technology News

See more More Technology News

Glastonbury Festival 2022

Glastonbury 2022 broke data records, EE says

A child using a laptop computer

Pupils ‘AirDrop nudes in maths and use Google Drive to store images’, MPs told

Over 20 million US dollars were raised by the public for drones to fight the Russian invasion

Tech company to gift Bayraktar drones to Ukraine after millions raised by public

A mixed reality holographic patient

UK medical students training on hologram patients in world-first

Laptop

Warning new internet laws will hand ministers ‘unprecedented’ powers

A battery changing station of Nio brand electrical car (Alamy)

Two dead after Nio electric car they were testing ‘falls from building’

Alexa to expand

Amazon’s Alexa could mimic the voices of dead relatives

Ai-Da at work

Robot painting Glastonbury’s famous faces says festival atmosphere is ‘electric’

Instagram's new age verification tools, which have started being testing in the US

Instagram begins testing new age verification tools

A security surveillance camera is seen near the Microsoft office building in Beijing

Microsoft: Russian cyber spying targets 42 Ukraine allies

Social media apps on a smartphone

Meta removes ‘large numbers’ of upskirting images found on Facebook

Rio Ferdinand poses for photographs with children at 10 Downing Street to celebrate the launch of the Diana Award’s annual anti-bullying campaign Don’t Face It Alone (Stefan Rousseau/PA)

Rio Ferdinand calls for new ‘inspiring’ online platform to combat child bullying

A screenshot of the Microsoft Outlook email service

Microsoft’s Outlook email service hit by outage

Elon Musk

Elon Musk’s proposed £35.8bn Twitter deal gets board endorsement

Apple unveils new products

Guide Dogs launches scheme to provide free iPads to children with sight loss

A woman using a laptop

Cloudflare outage knocks hundreds of websites offline