Binance and Sequoia Capital Pledge Millions In Funding For Elon Musk’s Takeover Deal

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The post Binance and Sequoia Capital Pledge Millions In Funding For Elon Musk’s Takeover Deal appeared first on Coinpedia Fintech News

Tesla and SpaceX chief executive Elon Musk had managed to raise $7.14 billion out of the $44 million bid for Twitter from investors like Sequoia Capital, crypto exchange Binance, and Andreessen Horowitz, as per the SEC filing of May 2022.

The Changpeng Zhao-led Binance had a hand in Musk’s acquisition of Twitter, as it provided $500 million in funding. The SEC filing also revealed that Sequoia put in $800 million in funding towards Musk for the bid.

Back in July, Elon Musk pulled back from his $44 billion bid to buy Twitter after a month-long saga that hurt the sentiments of investors and shook the market, kicking off a possibly long legal battle with the company. Musk was subject to facing a fine of $1 billion if he walks away.

Now, the Twitter deal seems back on this month as Binance confirms that it is still ready to support the deal as part of its push for Web3 adoption. Reportedly, even tech investor Sequoia Capital is still backing Tesla CEO Elon Musk’s $44 billion takeover bid on the social media platform, by setting aside $800 million capital allocation for it.

Binance has also hinted about carrying forward its promised value of $500 million.

A representative from Binance revealed, “we’re still committed and nothing new to share at this moment” citing Changpeng ”CZ” Zhao’s comments from May on Twitter: “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.”

On October 3, Musk seemed to back out abruptly after he filed a notice with the Delaware Chancery Court, which hinted that he is ready to go ahead with the “closing of the transaction contemplated by the April 25, 2022 Merger Agreement.”

Now, if the deal proceeds smoothly, the purchase will be up for the previously agreed-upon $54.20 per share for a total of $44 billion.

Sequoia Capital has been supporting Musk’s endeavors for a long time now. Back in time, Sequoia was an early-stage investor in PayPal’s initial steps. The payments platform co-founded by Musk was eventually sold for $1.5 billion in 2002. The firm also formed a part of a $675 million funding round for Musk’s Boring Company in April.

Not just the Twitter deal, Binance has eyed many mainstream deals this year. Previously, the biggest exchange placed a $200 million strategic investment into financial news outlet Forbes, with an intention to improve consumer understanding of crypto and blockchain.

Binance has already splurged $325 million on 67 projects this year, and the firm plans to probably spend more than $1 billion this year in commercial investments.

Twitter Agrees To Close The Deal With Musk At $54.20 Per Share

Twitter seems ready to move forward with Elon Musk’s deal for the Twitter buyout. On October 4, the social media platform announced that it intends to close the transaction at $54.20 per share.

As per a tweet by Twitter Investor Relations on October 4, “We received the letter from the Musk parties which they have filed with the SEC. The intention of the Company is to close the transaction at $54.20 per share.”

The speculation that Musk could be the new owner of Twitter has received a mixed response from the Twitter community.

Dogecoin creator Bill Markus told his 1.7 million followers on Twitter that “if Elon musk makes Twitter better, then Twitter will be better.” He also added, “If Elon musk ruins twitter, then we don’t have to hear all the stupid things people say on Twitter anymore. that’s a win-win.”