The fundraiser, which totaled $7.14bn, allows Musk to halve the margin loan he’s taking to co-fund the takeover, expanding the equity commitment by $6.25bn to $27.25bn. Musk had agreed to buy Twitter for a total of $44bn, or $54.20 per share.
The biggest contributor, who allotted $1bn, is Lawrence J. Ellison Revocable Trust, a San Francisco VC company known to have invested in Theranos, a biotech company founded by Elizabeth Holmes, who was later found guilty of four counts of criminal fraud.
Another big commitment was made by HRH Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, a Saudi Arabian billionaire who pledged to add his 35 million Twitter shares, worth roughly $1.9bn, to the bid “in order to retain an equity investment in Twitter following completion of the Merger.” Initially though, Bin Talal was skeptical.
All commitments are conditional and will be realized “at or immediately prior to the closing of the merger,” which in turn is subject to approval from stockholders and regulators.