To finance the takeover of Twitter, Elon Musk raises more than 7 billion dollars

Elon Musk announces that he has secured $7.14 billion to finance the takeover of Twitter. It lists Oracle co-founder Larry Ellison and Saudi prince and businessman Al-Walid bin Talal among the investors.

New financing for the takeover of Twitter

In a document filed with the SEC (American stock market policeman), the boss of Tesla and SpaceX names a total of 19 investors who have agreed to contribute to the acquisition of the social network. Multi-billionaire Larry Ellison, who co-founded Oracle and sits on Tesla’s board of directors, will bring in $1 billion. Investment funds Sequoia Capital ($800 million), Vy Capital ($700 million) and Brookfield ($500 million) are also among the main contributors. Prince ben Talal will for his part make available nearly 35 million of his Twitter shares once the takeover is finalized in order to retain a stake in the capital of the company that Elon Musk wishes to withdraw from the stock market.

The Saudi investor had previously deemed the offer to buy Elon Musk at $54.20 per share (about $44 billion in total) too low compared to the “intrinsic value of Twitter”.

These contributions will allow the boss of Tesla and the richest man in the world to reduce the amount of his margin loan contracted with the Morgan Stanley bank and other financial institutions, reducing it from 12.5 billion dollars to 6.25 billion. A margin loan allows a borrower to increase their credit by pledging assets as collateral. In Elon Musk’s case, it’s his Tesla shares.

At the same time, the share of the acquisition of Twitter financed in shares and in cash by Elon Musk and the list of investors will rise to 27.25 billion dollars, against 21 billion dollars previously. The Tesla boss also told the SEC that he continued to seek other sources of funding from Twitter shareholders, including the platform’s founder and former boss Jack Dorsey.