Elon Musk has begun to answer some of the questions that have arisen after announcing the purchase of Twitter, especially in economic terms. A new regulatory document reveals that the businessman has obtained the support of multiple companies and investment funds to finance the acquisition of the social network. So the tycoon an estimated contribution of 7,100 million dollars has been securedwhich will allow him to drastically reduce the bank loan he had pledged against his Tesla shares.
The list of investors willing to contribute millions of dollars for Elon Musk to buy Twitter is quite varied. In it appear “traditional” investment capital companies —Andreessen-Horowitz, for example—as well as other resounding names. One of the most striking presences is that of Binance, one of the most important cryptocurrency exchange platforms in the world; although surely the most peculiar is that of Qatar Holding LLC.a subsidiary of Qatar Investment Authoritythe controversial Qatari sovereign wealth fund.
If we take into account that Elon Musk has raised the flag of “freedom of expression” in his bid to buy Twitter, that part of the money comes from Qatar, a country that in recent years has been under scrutiny for its human rights policies. Humans and expression, without a doubt, can be marked as an important contradiction.
However, the CEO of Tesla and SpaceX seems to be achieving his goal of exposing a smaller part of his personal fortune to close the acquisition. It is that thanks to the contribution of investors, Musk will considerably reduce the bank loan of 12,500 million dollars that he had backed with a portion of his own shares of Tesla valued at $ 62,500 million. The same now will be “barely” 6,250 million of dollars.
The investors that will accompany Elon Musk in the purchase of Twitter
This is the list of companies and investment funds that will add their “grain of sand” to finance the purchase of Twitter for 44,000 million dollars.
|AM Management & Consulting||$25 million|
|AH Capital Management, LLC (a16z)||$400 million|
|Aliya Capital Partners LLC||$360 million|
|BAMCO, Inc. (Baron)||$100 million|
|DFJ Growth IV Partners, LLC||$100 million|
|Fidelity Management & Research Company LLC||$316.1 million|
|Honeycomb Asset Management LP||$5 million|
|Key Wealth Advisors LLC||$30 million|
|Lawrence J. Ellison Revocable Trust (Larry Ellison)||$1 billion|
|Litani Ventures||$25 million|
|Qatar Holding LLC||$375 million|
|Sequoia Capital Fund, LP||$800 million|
|Strauss Capital LLC||$150 million|
|Tresser Blvd 402 LLC (Cartenna)||$8.5 million|
A financing that has not been free of controversy
With the input of investors, Elon Musk begins to take some of the pressure off to define some key points of the Twitter purchase. Let us remember that the original financing package for $46.5 billion It included the aforementioned $12.5 billion loan, $13 billion debt financing against the social network’s assets, and $21 billion in cash contributed by the businessman himself.
The last figure was the one that caused the most questions, because Elon Musk did not have such liquidity Despite being the richest person in the world. However, in the days after the announcement of the acquisition, the tycoon sold almost 10 million shares of Tesla valued at 8.4 billion dollars. And although it was not publicly mentioned what that figure would be used for, the most logical speculation pointed to the search for fresh money to complete the transaction.
Beyond that, the CEO of Tesla and SpaceX would continue with the idea of convincing the large shareholders that Twitter currently has not to withdraw their money from the company when it goes private. According to Bloomberghas already taken an important step in this direction by convincing the Saudi prince Alwaleed bin Talal -one of the shareholders most important, and one of the most notorious critics of the Musk purchase—to maintain his investment in the social network.
When it became official that Elon Musk would buy Twitter, an old dispute between the businessman and US Senator Elizabeth Warren was revived. The legislator, who in the past accused him of evading taxes, assured that the tycoon took advantage of US tax laws to acquire the social network by hiding behind its untaxed wealth.
This claim was later supported by Steve Wamhoffdirector of federal tax policy at the US Institute of Taxation and Economic Policy “If you look at Musk’s ‘income’ as defined by our tax code, you’ll see that this guy is really rich, but not rich enough to buy Twitter. When you look at a more complete definition of your income — with the parts that aren’t included as taxable income under our tax rules and therefore aren’t taxed — then you start to see how you can buy Twitter.” , he stated.