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Group of investors pledge $7B to back Elon Musk's Twitter purchase

By Simon Druker
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Group of investors pledge $7B to back Elon Musk's Twitter purchase
Tesla founder Elon Musk, pictured at the Met Gala, has assembled a group of 19 investors that will collectively contribute more than $7 billion toward his bid to buy Twitter and take the social media company private. Photo by John Angelillo/UPI | License Photo

May 5 (UPI) -- Elon Musk has assembled a group of 19 investors that will collectively invest more than $7 billion to aid his bid to buy Twitter, disclosure documents filed with the U.S. Securities and Exchange Commission on Wednesday show.

Among the investors are a venture capital firm headed by Oracle founder Lawrence Ellison, the government of Qatar and a Saudi prince and Sequoia Capital, according to the filing.

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Ellison is also a Tesla board member and friend of Musk. His pledge of $1 billion is the largest cash amount of any member in the group.

Saudi Arabia's Prince al-Waleed Bin Talal Al Saud agreed to retain his existing 34,948,975 shares in the company, a stake valued at $1.9 billion.

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California-based venture capital firm Sequoia Capital will contribute $800 million, while government-run investment firm Qatar Holding is adding $375 million.

There are some tech companies among the collective as well. Cryptocurrency company Binance is forking over $500 million while tech investment firm Vy Capital is contributing $700 million in the bid to acquire the social media platform.

Honeycomb Asset Management, a private New York investment firm, is contributing the smallest amount at $5 million.

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The SEC filing also shows that Musk's margin loan as part of the financing was reduced from $12.5 billion to $6.25 billion.

In late April, Twitter announced it would accept a $44 billion offer from Musk. The SpaceX and Tesla founder intends to take the company private and overhaul its moderation policies.

The company said that under the terms of the deal, Twitter stockholders will receive $54.20 in cash per share, representing a 38% premium to its April 1 stock price -- the last trading day before Musk disclosed his about 9% stake in Twitter.

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Following the agreement, Musk sold around 4.4 million shares of his shares in Tesla, worth about $4 billion at the time.

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