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IPFS News Link • Social Networking/Social Media

Musk Raises $7.1B From Investors, May Become Twitter Interim CEO

• https://insideevs.com, By: Dan Mihalascu

After Tesla and SpaceX, Elon Musk could also become the CEO of Twitter Inc, at least for a few months after his $44 billion billion acquisition of the social media company is completed.

CNBC report citing unnamed sources claims that Elon Musk is expected to serve as Twitter's temporary CEO for a few months. The same sources told the business outlet that Musk recently held presentations in front of investors he handpicked, where he gave financial projections based on his analysis of Twitter.

Apparently, those presentations worked because the billionaire has secured $7.14 billion in funding from a group of investors to finance the $44 billion takeover of the social media platform. Oracle co-founder and Tesla board member Larry Ellison is the biggest single contributor with $1 billion, a May 5 SEC filing shows.

In the filing, Musk revealed that he also received equity commitment letters from investors including venture firm Sequoia Capital, cryptocurrency exchange Binance, sovereign wealth fund Qatar Holding, asset management company Brookfield, and several family offices that manage the wealth of affluent individuals. 

The document also showed that Musk will continue to hold talks with existing holders of Twitter, including the company's former chief Jack Dorsey, to contribute shares to the proposed acquisition. CNBC's David Faber claims that sources told him Dorsey may back Musk's takeover of Twitter (see above video).

As a result of the new equity commitments, Musk's margin loan against his shares in Tesla is reduced to $6.25 billion from $12.5 billion announced earlier. This should be good news for investors worried he might dump more of his Tesla stock to fund the acquisition of Twitter.


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