Billionaires become billionaires not by spending all of their own money to fund massive business deals, but by raising funds from their billionaire friends — or the bank!
This was Elon Musk’s exact strategy in finding the billions of dollars needed to purchase Twitter.
A new Securities and Exchange Commission filing showed Elon Musk has raised $7.14 billion in funding toward his $44 billion purchase of Twitter.
The Tesla and SpaceX CEO has secured investments from Oracle co-founder Larry Ellison, cryptocurrency exchange platform Binance, and capital management firms Fidelity and Sequoia.
The filing showed Ellison will contribute the largest amount at $1 billion. Sequoia has committed $800 million, Binance will contribute $500 million, and Fidelity has pledged $316 million. Qatar Holding will also contribute $375 million.
In the filing, Musk noted that he is open to receiving “additional financing commitments to fund additional portions of the total Merger Consideration.” Should additional financial contributions be made, he added they “may replace portions of the financing commitments previously reported.”
With the new financial commitments, Musk cut his margin loan of $12.5 billion, taken with a group of lenders, by half to $6.25 billion.
Saudi Prince Al Waleed Bin Talal al Saud previously committed the rolling of his nearly 35 million shares into the bid, worth around $1.7 billion.
Musk has given shareholders the option of contributing their shares toward the Twitter buyout.
On Tuesday, Musk suggested that Twitter start charging government and commercial users a “slight” fee to use the social media platform.
Twitter will always be free for casual users, but maybe a slight cost for commercial/government users
— Elon Musk (@elonmusk) May 3, 2022
The brilliance of Musk’s purchase is his willingness to do business in such a public way. Never before has the American public been so privy to the inner workings of a billion-dollar business deal as we are currently.
It’s fascinating to witness Qatari billionaires help Elon Musk buy what seems to be the single most influential and controversial social media platform in history.
Ownership aside, Musk’s insistence on bringing back a semblance of free speech rights after years of ultra-biased censorship of conservatives, and those simply questioning the status quo, is exciting enough not to abandon the platform just yet.
Since Musk’s acquisition, conservatives have noticed an uptick in their Twitter followings. There’s yet to be an explanation as to why.
Author: Asa McCue