19 Investors Agreed to Put Up $7 Billion to Back Musk’s Twitter Deal
Binance, a Saudi prince, and Larry Ellison are among a few financers who have pledged to back Elon Musk’s $44 billion buyout deal with Twitter.
May 5 2022, Published 12:21 p.m. ET
A May 4 filing with the SEC has revealed the identities of the 19 financers who have pledged to help fund the $44 billion deal between Elon Musk and Twitter. In total, the group of investors has agreed to put up about $7.14 billion, which allows Musk to cut back on the amount of money he has to borrow against his Tesla stake.
Here’s a look at who the financers are, how much they're pledging, and what they're receiving in exchange for their funding.
Binance, a Saudi prince, and Larry Ellison are among a few who have pledged to back Musk’s deal with Twitter.
We all know Musk is a wealthy man — in fact, the world’s wealthiest at the moment. But that doesn’t necessarily mean he has immediate access to large sums of cash. Most of Musk’s money is tied up in his businesses, particularly in his Tesla shares.
If Musk needs money, to purchase one of the largest social media networks in the world, he may need to sell some shares or raise funding from wealthy investors looking to embark on their next business venture.
Just last week, Musk reportedly sold $8.5 billion worth of Tesla stock after Twitter accepted his buyout bid of $44 billion. On May 4, 2022, a filing with the SEC revealed that Tesla’s CEO agreed to accept funding from numerous financers to seal the Twitter deal. A.M. Management & Consulting was the first-named investor on the list, offering $25 million. Some of the other backers include AH Capital Management, L.L.C. (a16z), which offered $400 million, and Aliya Capital Partners LLC, which promised $360 million.
Binance, a widely recognized cryptocurrency platform used to buy, sell, and trade digital currency, was another investor listed in the SEC filing. Binance, which was founded by Changpeng Zhao, has pledged to put up $500 million to go toward the Musk-Twitter buyout deal. Among all the investors that have agreed to help fuel the deal, Larry Ellison (listed as Lawrence J. Ellison Revocable Trust in the SEC filing), the owner of Oracle, pledged the most, with an offer of $1 billion.
Here’s a look at the other investors who have agreed to help fund Musk’s Twitter deal.
| Equity Investor | Aggregate Equity Commitment |
|---|---|
| Aliya Capital Partners LLC | $360 million |
| BAMCO, Inc, (Baron) | $100 million |
| Brookfield | $250 million |
| DFJ Growth IV Parents, LLC | $100 million |
| Fidelity Management & Research Co. LLC | $316,139, 386 |
| Honeycomb Asset Management LP | $5 million |
| Key Wealth Advisors LLC | $30 million |
| Litani Ventures | $25 million |
| Qatar Holdings LLC | $375 million |
| Sequoia Capital Fund, L.P. | $800 million |
| Strauss Capital LLC | $150 million |
| Tresser Blvd 402 LLC (Cartenna) | $8.5 million |
| VyCapital | $700 million |
| Witkoff Capital | $100 million |
Elon Musk has promised a Saudi prince millions of Twitter shares in exchange for his investment.
Al Waleed bin Talal Al Saud, a Saudi Arabain prince and billionaire business magnate, was another investor listed on Musk’s most recent SEC filing. In exchange for his investment, the prince is expected to receive 34,948,975 shares of Twitter stock.
Between the money Musk collected from selling some Tesla shares and the contributions from the investors named above, Musk will only have to come up with roughly $27 billion to finalize the Twitter deal.