Elon Musk secures R111 billion in new funding for Twitter purchase

Elon Musk has secured about $ 7.1 billion (R111 billion) in new funding commitments for his proposed $ 44 billion (R689 billion) acquisition of Twitter Inc., the company said in a filing Thursday.

The pledges come as the Tesla Inc. billionaire raises the capital to finance one of the largest acquisitions in the tech industry to date.

Investors named in the filing include Binance, Brookfield, Fidelity Management & Research, Lawrence J Ellison Revocable Trust, and Qatar Holding.

Shares of Twitter were up 2.3% in pre-market trading. Musk is now in discussion with Twitter co-founder Jack Dorsey about the contribution of some of his shares to the acquisition.

The company also said that a previously announced margin loan committed to the deal was reduced to an aggregate principal amount of $ 6.25 billion (R98 billion) from $ 12.5 billion (R196 billion).

The richest man in the world reached an agreement on April 25 to acquire Twitter using a financing plan that has alarmed some Tesla investors.

In addition to pledging tens of billions of dollars of his Tesla stock to back margin loans, Musk has pledged to line up about $ 21 billion (R329 billion) of shares.

It is unclear how much of this would result from the sale of a portion of its stake in Tesla. Musk sold more than $ 8.5 billion (R133 billion) of Tesla stock to fund the deal.

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