Who are the billionaire investors supporting him?

By Judy J. Beasley Last updated May 7, 2022

Billionaire businessman Elon Musk got more than $7.1 billion in a new equity financing from a group of investors to help fund its $44 billion acquisition of Twitter.

Eighteen investors have made commitments ranging from $850,000 to $1 billion, according to a regulatory filing with the U.S. Securities and Exchange Commission.

Last month, Twitter reached a definitive agreement to be acquired by an entity wholly owned by Mr. Musk, for $54.20 per share in cash. Upon completion of the transaction, which is expected to close by the end of this year, Twitter will become a private company.

The National looks at prominent names backing the founder and CEO of Tesla and rocket company SpaceX to acquire Twitter.

larry ellison

Texas-based tech titan Oracle founder Larry Ellison, who is worth more than $95 billion, has pledged $1 billion to back Mr Musk’s bid. Mr. Ellison, who also sits on Tesla’s board and is a good friend of Mr. Musk, disburses the largest share among the 18 investors. Currently, his share in Tesla is worth more than $14 billion, according to Bloomberg.

Binance

The world’s largest cryptocurrency exchange, Binance, has committed a $500 million investment in Mr Musk’s takeover of Twitter. Founded in China in 2017, the company is headquartered in the Cayman Islands and Seychelles. In the past, it has come under increased scrutiny from regulators in the US, UK, Europe and China. It has since taken steps to improve its relationship with regulators.

Vy Capital

Dubai-based technology investment firm Vy Capital will invest $700 million in the Twitter deal. Last month, he also led a $675 million financing round in Mr. Musk’s lesser-known The Boring Company. The round valued the startup at $5.7 billion.

The tunnel construction company is working on a high-speed hyperloop transportation system. Last month, he said he was approaching a milestone.

Capital Sequoia

Another investor in Mr Musk’s Boring Company, California-based venture capital firm Sequoia Capital, has pledged $800 million for the Twitter deal. Company partner Roelof Botha was chief financial officer of fintech company PayPal when Mr Musk was its chief executive nearly two decades ago.

“For more than two decades, we’ve had a front-row seat to the business and technical prowess of Elon, X.com, now PayPal, to SpaceX and The Boring Company. We, like him, see the opportunity to drive meaningful product innovation that will help unlock the full potential of Twitter as a global platform that connects the world,” Sequoia said in a statement.

AH Capital Management

AH Capital Management, investment adviser to Andreessen Horowitz (A16Z), has committed $400 million. Founded in Silicon Valley in 2009 by Marc Andreessen and Ben Horowitz, A16Z is a venture capital firm that backs tech entrepreneurs. It has $28.2 billion in assets under management across multiple funds.

Larry Ellison, founder and former CEO of Oracle. Reuters

Qatar Holding

Qatar Holding, a subsidiary of the Gulf state’s sovereign wealth fund Qatar Investment Authority, will invest $375 million. Established in 2005, the QIA aims “to protect and develop Qatar’s financial assets and help diversify the economy”, the authority said on its website. Its investments span major global markets, asset classes, sectors and geographies.

Aliya Capital Partners

Miami-based Aliya Capital Partners has committed $360 million. He currently invests in innovative and disruptive companies including Airbnb, SpaceX, Robinhood, Grab, Brex, Chime, Stripe, Impossible Foods and Paytm, among others.

Brookfield

Toronto-based Brookfield will invest $250 million in the Twitter deal. It manages nearly $690 billion in assets across various segments such as real estate, infrastructure, private equity and credit, including through its subsidiary Oaktree Capital Management.

“We put our own capital at the service of our partners in virtually every transaction, aligning interests and bringing the strengths of our operational expertise, global reach and large-scale capital to everything we do,” said he stated on his website.

Capital Strauss

Founded in 2006, Strauss Capital is a private investment bank. He committed $150 million to Mr. Musk. His clients include established and emerging middle market companies.

Prince Alwaleed bin Talal

Saudi billionaire investor Prince Alwaleed bin Talal, who previously opposed Mr Musk’s takeover bid, has agreed to transfer his 34.9 million shares in the deal, Thursday’s filing shows . At $54.20 per share, it will be an approximately $1.9 billion stake in the microblogging platform.

Prince Alwaleed, who has a stake in Twitter through his Kingdom Holding Company, initially said Mr Musk’s offer did “not come close to Twitter’s intrinsic value given its growth prospects”.

Updated: 07 May 2022, 05:13

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