Binance joins funding for Elon Musk's takeover of Twitter


Crypto exchange giant Binance is among a dozen outside investors backing Elon Musk's $44 billion takeover of Twitter, according to a filing published on Thursday.

The amended 13-D, filed to the Securities and Exchange Commission revealed a $500 million commitment from Binance. Venture capital firm Sequoia pledged $800 million, Fidelity offered up $316 million and a16z allotted $400 million.

Total equity commitments listed in the filing amount to around $5.2 billion. Saudi Arabian billionaire Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, an existing investor, has also opted to retain 34.9 million shares, subject to certain conditions. 

"We're excited to be able to help Elon realize a new vision for Twitter," Binance CEO Changpeng Zhao told The Block. "We hope to be able to play a role in bringing social media and web3 together and broadening the use and adoption of crypto and blockchain technology."

Twitter funding

Musk is also set to take over as Twitter's temporary CEO for a few months following the closure of the deal, sources told CNBC

The move would temporarily unseat current CEO Parag Agrawal, who has been in place since November.

In April, the Tesla billionaire had agreed to pay $54.20 per share for Twitter. The transaction, which will make Twitter a privately held company, is expected to close sometime this year, pending approval from stockholders and regulators.

The announcement came four days after the billionaire unveiled a financing package to back the acquisition, which, Reuters reported, led Twitter's board to take the offer more seriously.

Musk made the purchase with $25.5 billion of fully committed debt and margin loan financing and an additional $21 billion equity commitment.

The Tesla CEO has previously said that, should his takeover succeed, he would open-source Twitter's algorithm and try to make it an inclusive arena for free speech. He also said he would try to tackle spam and bot accounts. 

The deal had led to speculation about how his involvement might change the makeup of 'Crypto Twitter.'

UPDATE (9.40 ET): This story was amended to add detail about Musk's potential stint as CEO. 

For more breaking stories like this, make sure to subscribe to The Block on Telegram.

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

The TRON Ecosystem Thrives Amidst Market Chaos

TRON DAO has announced the launch of a $10 million incentive fund in light of recent events to support Terra developers migrating to the TRON ecosystem, including TRON’s EVM compatible cross-chain solution BitTorrent Chain (BTTC), which helps facilitate the seamless transfer of assets across mainstream public chains, including TRON, Ethereum, and BNB Chain. 
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC