Twitter deal latest updates: ‘hard part for Musk is fixing Twitter’

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on May 5, 2022
  • Elon Musk secured $7.14 billion in outside funding for his Twitter deal.
  • He's expected to take on the top position at Twitter once the deal closes.
  • Wedbush's Dan Ives discussed the updates on CNBC's "Squawk Box".

Elon Musk on Thursday said he’s secured another $7.14 billion in outside funding to execute the Twitter Inc (NYSE: TWTR) deal. Shares of the microblogging company are up 4.0% this morning.

Oracle co-founder made the largest contribution

The SEC filing reveals notable names as investors, including Larry Ellison (co-founder of Oracle), Binance (crypto exchange), and Sequoia Capital (private equity company) among several others.

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The largest contribution came from Ellison worth $1.0 billion. Interestingly, Saudi Prince Alwaleed bin Talal, who was initially against the takeover, also opted to roll his $1.89 billion stake into the deal.  

Also on Thursday, sources that preferred to remain anonymous told CNBC’s David Faber that Musk himself is expected to take on the top position at Twitter once the $44 billion transaction is complete.

Wedbush Securities’ Dan Ives reacts to the news

The new funding means Elon Musk will have to sell less of Tesla shares to finance the buyout. Commenting on the news, Wedbush Securities’ Dan Ives said on CNBC’s “Squawk Box”:

I don’t think Binance here is a coincidence. It’s looking two, three steps ahead. Remember, the easy part for Musk was buying Twitter, the hard part will be fixing it. Sequoia, Ellison, Binance, and others will be key in transforming Twitter.

He’s now 90% sure that the Twitter deal will get done. According to Ives, it will be a smart move to have co-founder and 2nd largest individual shareholder of Twitter, Jack Dorsey, roll his stake into the deal as well.

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