Elon Musk gets $7 billion in new funding for Twitter deal

Elon Musk has put together a group of investors including Saudi Prince, Larry Ellison, and a Bitcoin exchange to raise more than $7 billion. to support his attempt To buy Twitter Inc.

The CEO of Tesla Inc. Letters pledged about $7.14 billion from a group of 19 investors. The statement said that the largest contribution comes from Saudi Prince Al-Waleed bin Talal, who agreed to keep his $1.9 billion stake in Twitter after its acquisition by Mr. Musk.

The new money will slash half the amount Musk needs to borrow against his stake in Tesla, and slightly reduce the cash balance he needs personally, to less than $20 billion.

Larry Ellison, co-founder of Oracle, agreed to pay $1 billion. Crypto exchange Binance.com, controlled by billionaire developer Changpeng Zhao, has promised $500 million. Other shareholders include $850 million in venture capital from Sequoia Capital. Arms of Fidelity Investments and . asset managers

Brookfield Asset Management company

bam 2.69%

will also participate.

Twitter will go private if Elon Musk’s $44 billion takeover offer is approved. This step will allow Mask to make changes to the site. Dan Gallagher of the Wall Street Journal explains the changes Musk has proposed and the challenges he might face when activating them. Illustration: Jordan Crans

A Binance spokesperson said her participation was “as a supporter of Elon Musk’s plans for Twitter and as an investor.” Mr. Zhao tweeted that the investment It was a “small contribution to the cause”.

Mr. Musk said he is in talks to bring more existing Twitter contributors, including co-founder Jack Dorsey, to the company. After the acquisition.

By compiling a list of big backers of the money, Mr. Musk will effectively reduce the amount of risk he would have to take personally to close the $44 billion deal. The richest man in the world, by some measures, Musk tapped into an extensive network of associates to join his plans.

He said he wanted a social media company to Be less censored in modifying contentBut he gave few details about his exact plans. He once said he didn’t care whether he was making money from the deal. Mr. Musk has a history of lacking schedules and goals at Tesla, the electric car company.

Twitter shares jumped 2% in pre-market trading to about $49, heading toward Mr. Musk’s bid price of $54.20. The closer the stock is to the bid price, the more likely investors are to make the ongoing deal.

As a result of the new funding commitments, Musk said the $12.5 billion margin loan he took to buy Twitter has been reduced to $6.25 billion and the acquisition will now be funded with $27.25 billion in equity and cash.

Mr. Musk’s massive borrowing against his shares has weighed on Tesla stock in recent weeks. Share prices stabilized in pre-market trading.

write to Will Foire’s will.feuer@wsj.com

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