Elon Musk is the new Twitter boss who has already taken some key decisions. Before the completion of his $44 billion acquisition. Musk had informed his co-investors in the Twitter deal that he planned to close the buyout of the social media platform by October 28.

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A number of equity investors such as Sequoia Capital, Binance, and Qatar Investment Authority that controls Qatar's sovereign wealth fund, Qatar Holding, have committed to help the billionaire fund his $44 billion acquisition of Twitter Inc. They have received paperwork for financing the acquisition from Musk's lawyers, Reuters reported quoting a source.

Musk had pledged to acquire Twitter for $46.5 billion through a mix of equity and debt financing. The total covers the $44 billion acquisition price tag and closing costs.

Much of the funding will be provided by Elon Musk who planned to sell his stake in electric vehicle maker Tesla Inc. The rest is expected to come as equity financing from large investors. Major banks, including Bank of America, Barclays, BNP Paribas, Mizuho, Morgan Stanley, MUFG, and Societe Generale have committed to giving Musk $13 billion for the acquisition.

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According to data available with the US Securities and Exchange Commission, Morgan Stanley alone has contributed nearly $3.5 billion for the acquisition.

Apart from this, a number of equity investors have also committed to finance the deal. Some of the major financing commitments for the Twitter acquisition are mentioned below.

Equity investor Commitment

Other equity investors such as AM Management and Consulting, BAMCO, DFJ Growth IV Partners, Honeycomb Asset Management, Key Wealth Advisors, Lawrence J. Ellison Revocable Trust, Litani Ventures, Strauss Capital LLC, Tresser Blvd 402 LLC (Cartenna) and Witkoff Capital have also committed to finance the acquisition.

Canadian investment firm Brookfield has committed $250 million towards the Musk’s Twitter acquisition.

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Initially, the world's richest man had planned to limit his investment in the $44 billion Twitter deal to just over $15 billion. He had expected to use his stake in Tesla to get loans of around $12.5 billion to avoid selling his shares. However, Musk later shelved the borrowing plan and sold roughly $15.5 billion worth of shares in Tesla in April and August. The Tesla CEO is expected to personally pay the transaction a little over $27 billion in cash, Mint reported.

(Edited by : Jerome Anthony)

First Published:Oct 28, 2022 11:06 AM IST