Musk gets $7bn for Twitter buyout from backers Sequoia Capital, Binance and moreBlathnaid O’Deaon May 5, 2022 at 13:50 Silicon RepublicSilicon Republic

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Elon Musk has secured commitments of varying amounts from 18 investors for his planned $44bn takeover of Twitter. The total amount he has raised from the funders is $7.1bn. This was confirmed by a filing released by the Securities and Exchange Commission yesterday (May 4).

The billionaire mogul has got backing from major firms such as Sequoia Capital, Andreesson Horowitz and VyCapital. Asset management firm Fidelity has also come on board, as have crypto exchange Binance and the nation of Qatar.

These firms are the first equity partners to back Musk’s Twitter buyout. The biggest donation amount for Musk came courtesy of Lawrence J Ellison Revocable Trust at $1bn. All other investments were smaller than $1bn, with the next biggest being $800m. The smallest amount was from Honeycomb Asset Management at $5m.

Twitter confirmed on 25 April that Musk was planning to purchase the site after the Tesla and Space X owner left everyone guessing as to his next move.

He made an all-cash offer in mid-April that amounted to around $43bn, which Twitter said it would review. Musk has been acquiring shares in the site for the past few months and owns a 9.2pc stake, meaning he is Twitter’s largest shareholder.

If the deal closes later this year, Musk will take Twitter private. He said previously that he plans to make it a place for free speech, adding that it has “tremendous potential.”

His comments were seen as controversial by those who do not want the site privatised by a billionaire.

The country of Qatar is giving Musk $375m for his acquisition plans, meaning the tech entrepreneur and free speech advocate is benefitting from a state that does not allow freedom of expression to all of its citizens. According to a report by Freedom House, Qatar scored 25 out of a possible 100 on its Freedom in the World index 2022.

“Musk has an evangelist view of the internet as an open space and democratising force,” Prof Jane Suiter, director of the Institute for Future Media, Democracy and Society at Dublin City University, told SiliconRepublic.com recently.

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