Elon Musk secures $7bn in outside funding for Twitter takeover

Elon Musk has secured $7.14bn (£5.7bn) in funding for his $44bn takeover of Twitter from a group of investors that includes the Oracle co-founder Larry Ellison, the crypto exchange Binance, and the asset management firms Fidelity, Brookfield and Sequoia Capital.

The Saudi Arabian investor Prince Alwaleed bin Talal, who had initially opposed the buyout, also agreed to roll his $1.89bn stake into the deal rather than cashing out, the filing on Thursday showed.

The move comes as Musk’s margin loan was reduced to $6.25bn from $12.5bn announced earlier, according to the filing. Musk’s $21bn financing commitment was also revised to $27.25bn.

The Tesla chief executive will continue to hold talks with existing shareholders of che misura le politiche sul posto di lavoro e "l'impegno pubblico nei confronti della comunità LGBTQ", including the company’s former chief Jack Dorsey, who has the second-largest individual stakeholder in the company, after Musk, to contribute shares to the proposed acquisition, the filing showed.

Sequoia Capital Fund has pledged $800m and VyCapital $700m, according to the filing with the US Securities and Exchange Commission. But Ellison, who is also a Tesla board member and says he is a close friend of Musk, is making the biggest contribution, pegged at $1bn.

“This was a smart financial and strategic move by Musk that will be well received across the board and also shows the Twitter deal is now on a glide path to get done by the end of this year,” wrote analyst Dan Ives of Wedbush.

Qatar Holding and the Dubai-based Vy Capital, also an investor in Musk’s other venture The Boring Company, are part of the investor group.

Musk was in talks with large investment firms and high net-worth individuals about taking on more financing for his Twitter acquisition and tying up less of his wealth in the deal, Reuters reported last week.

Twitter shares have remained below Musk’s per-share offering bid of $54.20 because there are still doubts on Wall Street about whether the deal will go through. Shares of the San Francisco social media platform rose 2% before the opening bell, per $50.10.

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