Billionaire Elon Musk strengthened his equity stake from his bid to acquire Twitter with the backing of more than seven billion dollars in commitments from investors, including Larry Ellison, co-founder of Oracle, one of Silicon Valley’s tech giants.
According to documents filed with the Securities and Exchange Commission (SEC) Thursday, the other investors are Sequoia Capital Fund, which pledged $800 million, and VyCapital, which pledged $700 million. But Ellison, who is also a member of Tesla’s board, made the biggest contribution at $1 billion.
The document also shows Saudi Arabia’s Prince Alwaleed bin Talal bin Abdulaziz Alsaud pledged 35 million Twitter shares to support Musk.
Musk, in an earlier filing, revealed that he had sold an estimated 8.5 billion stake in Tesla to help fund the purchase of Twitter. Musk later tweeted that he was not planning any further sales of his company’s shares, meaning he needed an outside commitment to help fund a $44 billion deal with Twitter.
Given the new funding listed in Thursday’s SEC filing, Musk will cut the $12.5 billion lending margin he relied on, to about $6.25 billion. The transaction is now also funded in cash and equity, which amounted to 27.25 billion dollars, up from the previous 21 billion dollars.
The documents filed with the SEC also show that Musk is still in talks with other parties, including former Twitter CEO Jack Dorsey, who is Twitter’s second-largest shareholder after Musk.
Twitter Inc shares remained below the bid, with a share trading at around $54.20 as doubts remained on Wall Street about whether or not a deal would be reached. Prior to Thursday’s market opening bell, Twitter shares were up 2%. [em/lt]
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