Binance will invest $500 million together with Elon musk to acquire twitter
A number of firms committed funds for the billionaire to take over Twitter, including the exchange.
Cryptocurrency exchange Binance announced that it is contributing $500 million to finance Elon Musk's $44 billion takeover of social media platform Twitter (TWTR).
In the latest Schedule, 13D filing with the U.S. Securities and Exchange Commission (SEC) filed on Wednesday, the world's largest crypto exchange was listed as an equity investor.
Venture capital firm Sequoia announced an investment commitment of $800 million and $500 million from Binance. In addition, Fidelity pledged $316 million and A16Z pledged $400 million.
The total equity commitment listed in the filing amounts to about $5.2 billion. According to the filing, Saudi Arabian billionaire HRH Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud (Kingdom) has also expressed an option to retain 34,948,975 shares, subject to certain conditions.
When an entity acquires more than 5% of an equity share of a company, it must submit a Schedule 13D to the SEC.
Twitter shares rose by almost 3% in premarket trading, while BNB Chain (BNB) tokens jumped from $399 to $414 after Binance announced it would participate.
Tesla billionaire Elon Musk had agreed to buy Twitter for $54.20 per share in April. Assuming stockholders and regulators approve the deal, Twitter will become a privately held firm sometime this year.
Reuters reported the Twitter board took Twitter's offer more seriously after the billionaire announced a financing package to support the acquisition.
A full $25.5 billion in debt and margin loans, as well as an additional $21 billion in equity commitment, was used for the acquisition by Musk.
In the event of a successful takeover, Tesla's CEO previously stated that he would open-source Twitter's algorithm and make it a platform for free speech. Furthermore, he promised to eliminate spam and bot accounts.
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