Elon Musk needed a hand to take over Twitter, and ties with the crypto industry proved fruitful
According to the most recent SEC report, Elon Musk attracted $7.13 billion in new financing commitments from various investors to buy all Twitter shares for approximately $54 each. The most interesting part of the filing is a contribution from one of the world’s largest cryptocurrency exchanges, Binance, which provided $500 million in commitment letters to Musk.
Essentially, commitment letters are loans provided by co-investors for a specific goal, which, in this case, is the outright acquisition of Twitter through the purchase of all available shares on the market. Typically, commitment letters are followed by a separate agreement in which the lender highlights the terms on which the borrower will return the investment.
Every equity investor on the table has contributed to the parent before or immediately after the merger. But while some investors contributed a specific amount, others committed by optionally providing their own shares of Twitter stock.
Prince Alwaleed bin Talal bin Abdulaziz Alsaud contributed 35 million shares. With a valuation of $54.2 per share, Alsoud’s contribution would be approximately $1.9 billion, the largest contribution of all co-investors.
Elon Musk’s Twitter purchase was one of the biggest events in the financial, crypto and media industries. Back in April, Elon Musk began hinting at a potential purchase of one of the world’s largest social media platforms as he continued to express his frustration with the large number of bots, scammers and other obnoxious individuals who are using the platform as users. negatively affect the experience. ,