Elon Musk obtains $7.1bn to fund Twitter acquisition

Elon Musk has secured $7.1 billion for the purchase of Twitter from investors including Oracle co-founder Larry Ellison and Saudi Prince Alwaleed bin Talal, according to a regulatory filing on Thursday.

Musk, CEO of Tesla and SpaceX, enumerated 18 investors who agreed to make financial commitments, including Ellison ($1 billion), Sequoia Capital ($800 million), and Vy Capital ($700 million).

According to the filing, the Saudi prince, president of the Kingdom Holding Firm conglomerate, agreed to donate about 35 million Twitter shares worth $1.9 billion in order to keep a stake in the company after the purchase.

Alwaleed had rejected Musk’s $54.20 per share bid as too low, but on Thursday he applauded Musk on Twitter, writing, “I look forward to investing $1.9 billion in the ‘new’ Twitter and joining you on this wonderful adventure.”

The investments would lower a $12.5bn margin loan structured via Morgan Stanley and other banks to $6.25bn, the document stated.

The new funding will reduce the number of Musk’s Tesla shares used as security for the margin loan.

Musk “may receive additional financing commitments to fund additional portions of the total Merger Consideration,” according to the filing, and he is in discussions with former Twitter CEO Jack Dorsey and others who may contribute shares to maintain an equity stake.

The acquisition of Twitter is likely to conclude in late 2022.

Musk is anticipated to remain as interim CEO of Twitter for a few months after the conclusion of the transaction, CNBC said, citing anonymous sources.

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