Binance and Sequoia Capital are the two major investors in Elon Musk’s Twitter takeover, and according to sources close to the two firms, they still support Musk in his aim to purchase Twitter.
Sequoia has already invested $800 million in the deal. In the wake of Musk’s current offer to Twitter, chances are high that the contract might be closed soon. According to a source close to Sequoia’s funding issues, Sequoia will not be backing out of supporting Musk anytime more quickly; instead, the firm is still standing by him until the deal is done.
On the other hand, Binance committed roughly $ 500 million to Elon’s purchase of Twitter. The company’s spokesperson affirmed that the world’s top crypto exchange platform would not abandon the deal of funding the transaction.
Elon Musk proposed to purchase Twitter on October 4th for a starting offer of $54.20 a share. Musk had made this proposal at the beginning of the year; he, however, decided not to go through with the deal. Now, the agreement may successfully conclude soon, per CNBC reports. The deal has not yet been confirmed as official by both parties.
The purchase reportedly had hardships to conclude because of an issue with getting $ 13 billion in debt financing. It is not yet known whether the problem has been resolved or not. However, Jack Dorsey, the founder of Twitter, had already endorsed Elon’s takeover.
Crypto Exchange Commits $500 million to Fund Elon Musk’s Twitter Purchase.
As reported in May this year, Binance and Sequoia Capital committed $500 million and $ 800 million to support Elon Musk’s purchase of the social media platform Twitter. Elon Musk had offered $44 billion to the venue for its shares. Nineteen different parties had contributed approximately $ 7.1 billion to the deal, with Fidelity setting aside $ 316 million.
The CEOs from the two crypto platforms said,
“We’re excited to be able to help Elon realize a new vision for 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.”
In addition, Changpeng Zhao, Binance founder, said in a tweet after the news spread, saying the commitment is “a small contribution to the cause.” He also tweeted that Musk should “Privatise it, issue a token, decentralize it,” following Elon’s first offer to buy Twitter at the beginning of the year. Zhao also added that reducing scams and spam on social media platforms should be a priority.
Moreover, a Binance spokesperson told CoinDesk that the firm’s involvement is “as a supporter of Elon Musk’s plans for Twitter and as an investor.” Binance’s commitment helped the firm because after it affirmed its support, its coin, Binance coin, moved from $399 to $414 before settling at $407.
Musk, the founder of the electric car firm, Tesla, is a known supporter of cryptocurrencies like bitcoin and dogecoin. He agreed to buy Twitter and make it a proponent of free speech.
“I am against censorship that goes far beyond the law,” he tweeted last week. He also added that he wants to allow speech “which matches the law.”