Elon Musk has won the backing of some of the world’s wealthiest investors for his $44 billion takeover of Twitter.
From Oracle Corp’s co-founder Larry Ellison, a self-proclaimed close friend of Musk, to Saudi Arabian investor Prince Alwaleed bin Talal, who had earlier rejected the takeover bid, major investors have thrown their weight behind the offer.
Here’s how the deal stacks up, according to regulatory filings earlier this year:
Musk increased his financing commitment to $27.25 billion, from $21 billion.
The margin loan from Morgan Stanley tied to his Tesla stock stands at $6.25 billion, down from $12.5 billion announced on April 21
Musk has secured commitments from banks for $13 billion in loans secured against Twitter shares.
Elon Musk has won the backing of some of the world’s wealthiest investors for his $44 billion takeover of Twitter Inc.
Lawrence J. Ellison Revocable Trust – $1,000,000,000
Larry Ellison, co-founder of Oracle Corp, has agreed to invest $1billion towards Musk’s Twitter buyout, the largest contribution of all 18 investors the Tesla CEO has secured.
Ellison, 77, who is the ninth richest person in the world with a net worth of approximately $119.5billion, is known for his extravagant spending.
He once bought 98 percent of the Hawaiian island of Lanai, spent $194million on a yacht and invested hundreds of millions of dollars into luxury real estate in Malibu, California, Investopedia reported.
The software giant CEO also built an estate in California modeled after 16th-century Japanese feudal architecture.
In addition to owning 40 percent of Oracle, Ellison has stake in Tesla, NetSuite and Leapfrog Enterprises.
Larry Ellison (pictured with Bill Gates on his right in October 2021), CEO of Oracle Corp, has agreed to invest $1billion towards the Twitter buyout, the largest contribution of all 18 investors Musk has secured
Sequoia Capital Fund, L.P. – $800,000,000
Sequoia Capital – a venture capital firm that invests in startups in the energy, financial, enterprise, healthcare, internet, and mobile industries – is contributing $800 million towards Musk’s Twitter buyout.
In a statement issued to Axios Thursday, the firm said: ‘For over two decades, we’ve had a front row seat to Elon’s business and technical prowess, from X.com, which became PayPal, to SpaceX and The Boring Company. We see, as he does, the opportunity to drive meaningful product innovation that will help unlock Twitter’s full potential as a global platform that connects the world.’
The firm has 31 funds and has raised a total of $19.8 billion across all its funds.
Its latest funds, the Sequoia Crypto Fund, was announced in February 2022 and has already raised a total of $600 million, Crunchbase reported.
Sequoia Capital, according to its website, has previously worked with Apple, Google, Cisco, Unity, Snowflake and Zoom.
The firm is in its third generation of leadership with South African actuary Roelof Botha, 48, acting as Senior Steward. Botha has reportedly sat on the boards of MongoDB, Jawbone, Eventbrite, Evernote, Bird, Ethos, Mahalo, Natera, Nimbula, Square, Tokbox, Tumblr, Unity, Whisper and Xoom.
Sequoia Capital’s contribution to Twitter is the second largest of all 18 investors.
VyCapital – $700,000,000
VyCapital, a Dubai-based a global technology investment firm, is contributing $700 million towards the buyout. The firm was founded in 2013 by Alexander Tamas (pictured in 2010)
VyCapital, a Dubai-based a global technology investment firm, is investing $700 million into the buyout.
The firm is also an investor in The Boring Company, another Musk venture.
According to Crunchbase, VyCapital has raised a total of $354.1 million in its single venture fund, VY Capital Holdings Ltd., which was announced in September 2014.
The firm focuses on ‘category-defining technology companies’ that allegedly have the ‘potential to meaningfully impact humanity,’ according to the company.
VyCapital has more than 70 investments worldwide and is currently managing more than $5 billion in assets from leading global endowments and institutions.
The firm was founded in 2013 by Alexander Tamas who previously served as a Partner at DST and helped consolidate the Russian Internet sector around Mail.ru.
While at DST, Tamas personally led and sourced landmark investments in Facebook, Airbnb, Spotify, Twitter, JD.com, Alibaba, Xiaomi and Zalando.
Binance – $500,000,000
The world’s largest crypto exchange is investing $500 million in Twitter as a show of support for Musk.
Binance founder and CEO Changpeng ‘CZ’ Zhao tweeted Thursday that his company’s investment in the platform was a ‘small contribution to the cause’.
A spokesperson for the firm told CoinDesk its involvement in the platform is ‘as a supporter of Elon Musk’s plans for Twitter and an investor.’
Binance is investing $500 million in Twitter as a show of support for Musk. CEO Changpeng ‘CZ’ Zhao is pictured in April 2022
The world’s largest crypto exchange is investing $500 million in Twitter as a show of support for Musk. Binance founder and CEO Changpeng ‘CZ’ Zhao tweeted Thursday that his company’s investment in the platform was a ‘small contribution to the cause’
Last month after Musk made his initial offer to purchase the platform, Zhao tweeted: ‘Privatize it, issue a token, decentralize it’.
He also suggested the Tesla CEO should prioritize reducing spam and scams on the platform.
Also on Thursday, it was revealed that Binance has gained regulatory approval to provide digital asset services in France, the first European country to offer the company such permissions.
The permission was granted after months of regulatory setbacks and concerns over how the firm would ensure ‘anti-money laundering compliance,’ according to TechCrunch.
Binance, originally founded in China, is not allowed to operate in the UK or Germany. The firm has also largely pulled out of China due to Beijing’s sweeping crypto ban.
The company is reportedly still seeking a new home.
AH Capital Management, L.L.C. (a16z) – $400,000,000
AH Capital Management, L.L.C., a capital investment firm operating as Andreessen Horowitz, has committed $400 million towards Musk’s buyout.
The company invests in software and technology industries.
CEO Ben Horowitz addressed the news on Twitter, saying AH invested in the platform because they believe in the founders’ vision to ‘connect the world,’ which he thinks Musk can successfully do.
AH Capital Management, L.L.C., a capital investment firm operating as Andreessen Horowitz, has committed $400 million towards Musk’s buyout. CEO Ben Horowitz is pictured in 2016
‘While Twitter has great promise as a public square, it suffers from a myriad of difficult issues ranging from bots to abuse to censorship,’ Horowitz wrote.
‘Being a public company solely reliant on an advertising business model exacerbates all of these. Elon is the one person we know and perhaps the only person in the world who has the courage, brilliance, and skills to fix all of these and build the public square that we all hoped for and deserve.’
Horowitz, who is a general partner and cofounder of the firm, added: ‘We are excited to be part of this mission.’
AH was established over a decade ago and, as of April 2022, has more than $28.2 billion in assets under management as of April 2022, according to Forbes.
Horowitz has a tech background, having worked with cofounder Marc Andreessen at Netscape. The pair then cofounded Opsware, which they sold to HP for $1.6 billion in 2007.
The CEO is also an investor and board member of Medium, Databricks, Skype and Okta, as well as several others.
Qatar Holding LLC – $375,000,000
Qatar Holding LLC, a sovereign wealth enterprise of the Qatar Investment Authority, has invested $375 million in Twitter, giving the company a roughly 1 percent stake in the platform.
The firm’s involvement has proven curious considering it is a subsidiary of the sovereign wealth fund of Qatar, a country that does not seemingly align with Musk’s ‘free speech’ values.
Last year, according to The Daily Beast, Qatari ‘authorities continued to curtail freedom of expression using abusive laws to stifle critical voices’.
Malcolm Bidali, a Kenyan ‘blogger and migrant workers’ rights activist’ was reportedly ‘forcibly disappeared’ and locked in solitary confinement for speaking out against worker abuses in Qatar. The activist paid a $6,800 fine and eventually left the country.
Musk has indicated his Twitter takeover was fueled by the platform’s alleged failure to uphold free speech principals.
It is unclear if Qatar Holding will push back on Musk’s plans or act as a more passive investor.
Aliya Capital Partners LLC – $360,000,000
Aliya Capital Partners is an Investment Management company based in Miami, Florida.
The firm has agreed to invest $360,000,000 into Musk’s Twitter takeover.
According to its website, Aliya represents and manages an ‘exclusive community of families’ aiming to create ‘limitless value’.
Aliya, led by founding partner and CEO Ross M. Kestin, is dedicated to watching markets ‘many have never heard of’ and taking ‘advantage of opportunities as they appear.’
Before founding Aliya, Kestin worked at HSBC, which is one of the world’s largest banking and financial services organizations, and Fortune Partners Group, of which he was also a co-founder.
Fidelity Management & Research Company LLC – $316,139,386
Fidelity Management & Research Company, which acts as the investment advisor to Fidelity Investments’ family of mutual funds, has invested more than $316 million in Twitter.
The firm’s bid to invest in the social media platform came just days after Fidelity Investments announced that it would soon allow investors to add BitCoin to their retirement 401(k) plans.
Fidelity is run by Chairman and CEO Abigail Johnson, whose net worth is approximately $20.9 billion. She owns an approximately 24.5 percent stake in the firm, according to Forbes.
Johnson became CEO in 2014 when she took over for her father and has been chairman since 2016.
Her grandfather, Edward Johnson II, founded the Boston-based mutual fund giant in 1946. It currently has $4.2 trillion in managed assets.
Strauss Capital LLC – $150,000,000
Strauss Capital LLC, an investment bank in New York City, has committed $150 million towards Musk’s venture.
The firm was established in 2006 by Thomas J. Strauss and provides companies with ‘tailored and creative’ merger, acquisition, divestiture and recapitalization advisory services.
According to the firm’s website, its primarily serves private middle market companies and the private equity community.
Strauss, who serves as the firm’s managing director, has over thirty years of investment banking and operational experience.
Brookfield – $250,000,000
Canadian global asset company Brookfield has committed $250 million towards Musk’s Twitter takeover.
Brookfield Asset Management actively participates in various industries and economies across the globe and currently has $688 billion USD in assets under management.
On Tuesday, Brookfield insiders revealed the company is exploring a takeover of data-center operator Switch Inc., Yahoo Finance reported.
The asset manager has been active in the space for years and agreed to buy data-center operations from AT&T Inc. in 2018.
Sources allege Brookfield is one of several potential Switch buyers, however no final decisions has been made, meaning the firm could opt out of the deal.
BAMCO, Inc. (Baron) – $100,000,000
BAMCO, Inc., through its Baron Partners Fund, has agreed to invest $100 million in Twitter.
The fund invests primarily in U.S. companies with ‘significant growth potential,’ according to the firm’s website.
A substantial percentage of the fund’s assets are in its top 10 holdings which include Musk’s Tesla Inc., Space Exploration Technologies Corp., Hyatt Hotels and Spotify, among others.
Ron Baron, CEO of Baron Capital and one of Tesla’s largest shareholders, suggested Thursday – after it was revealed that his subsidiary BAMCO was investing in Twitter – that Musk got a good deal on his acquisition.
‘My guess 2-3x return or more next 4-5 years if successful,’ the CEO said in a statement to CNBC. ‘Purchase price really cheap since business had been so poorly run. Actually incredibly cheap and would have remained that way if Musk had not offered to acquire. In my opinion.’
Baron had previously called Musk’s involvement in Twitter ‘meaningless’.
DFJ Growth IV Partners, LLC – $100,000,000
DFJ Growth IV Partners, LLC is a venture capital firm focused growth stage investments in enterprise, consumer, and disruptive technologies.
The firm has committed $100 million to Musk’s Twitter buyout.
It was revealed last month that DFJ was one of several companies to contribute to the $675 million funding round for The Boring Company, another Musk venture.
Witkoff Capital – $100,000,000
Witkoff Capital, a firm owned by New York-based real estate tycoon Steven Witkoff, is investing $100 million in Twitter.
News of Witkoff’s investment comes just days after Steven’s son, Witkoff Capital President Zach Witkoff, married model and actress Sophi Knight in what some are calling the ‘wedding of the year’.
The event was held at former President Donald Trump’s Mar-a-Lago estate in Florida, according to The Real Deal.
The wedding was attended by Trump and his wife, Melania, billionaire real estate investor and hotelier Barry Sternlicht, developer Don Peebles and former baseball star Alex Rodriguez, among others.
Key Wealth Advisors LLC – $30,000,000
Key Wealth Advisors LLC has committed $30 million to Musk’s Twitter takeover.
The wealth management firm, which has offices in New York City and Alabama, advises clients with traditional and non traditional assets, according to the company’s LinkedIn page.
David Elfenbein is currently serving as the firm’s president. He previously worked at Wells Fargo, Morgan Stanley and UBS.
A.M. Management & Consulting – $25,000,000
A.M. Management & Consulting, a private equity, active investment, and consulting firm based in New York City, has agreed to invest $25 million in the social media platform.
The firm has made seven investments, with its most recent – not including Twitter – in November 2020 when ATAI Life Sciences raised $93 million, Crunchbase reported.
Litani Ventures – $25,000,000
Chicago-based venture capital firm Litani Ventures has invested $25 million in Twitter.
According to the firm’s website, it looks to invest in companies that are ‘building disruptive business across sectors’.
The firm also touts itself as being a company that ‘relentlessly seeks the truth’.
Tresser Blvd 402 LLC (Cartenna) – $8,500,000
Tresser Blvd 402 LLC has committed $8.5 million through Cartenna Capital, a Connecticut-based hedge fund manager founded in December 2019.
Cartenna Capital runs under CIO and Founder Peter Avellone.
According to his LinkedIn portfolio, the New York City-based entrepreneur previously worked for Angelo, Gordon & Co., Citadel LLC, Continuum Asset Management and SAC Capital/Point 72.
Honeycomb Asset Management LP – $5,000,000
Venture capital firm Honeycomb Asset Management LP committed $5 million to Musk’s Twitter takeover.
The company is known for its growth equity investments in the media, technology and telecommunication sectors.
CIO and Founder David J. Fiszel said on his LinkedIn profile that Honeycomb focuses on innovation and specializes in long/short equity and private growth investments.
Founded in 2016, Honeycomb has an excess of more than $1.4 billion in assets under management. Fiszel attributes the firm’s success to its established repeatable and scalable approach to investing.
Kingdom Holding Company
The filing also listed Saudi Arabia’s Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud as having committed 34,948,975 Twitter Inc shares.
Prince Alwaleed, who controls Kingdom Holding Company, is not providing cash like the other investors, but rather opting to forgo taking cash for his existing Twitter shares in exchange for a stake in the new parent company.
The filing also listed Saudi Arabia’s Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud (pictured in 2005) as having committed 34,948,975 Twitter Inc shares ‘in order to retain an equity investment in Twitter following completion of the Merger’
Prince Alwaleed, who initially tried to block Musk’s Twitter buyout, took to the platform in May to give a strong endorsement for the Tesla CEO
The royal made the move ‘in order to retain an equity investment in Twitter following completion of the Merger’.
Alwaleed had initially opposed the buyout, but later tweeted Musk today referring to his ‘new friend’ who will be an ‘excellent leader’ at the social media giant.