Elon Musk’s coinvestor roster for his $44 billion Twitter buyout underwhelms in many ways. Multiple checks from small investors indicate some skepticism about his latest idea, writes rob_cyran:
, is putting in $800 million. There’s also big investors known for tech investing like Fidelity Management, and some that aren’t, like Brookfield.
Musk now will only borrow $6.25 billion from banks against Tesla stock, rather than the previously agreed $12.5 billion. The trouble is, even after that, the additional funding from banks, plus the $7 billion injection, that he’s still on the hook for over $18 billion himself. Though he’s sold almost $9 billion in Tesla stock recently, there’s a hole. And piddling commitments from the likes of Key Wealth Advisors suggests he might have been scraping the barrel to drum up what he already has.
- Prince Alwaleed of Saudi Arabia has agreed to roll 35 million shares in the social network into the new company. Among other investors, Larry Ellison pledged $1 billion, Sequoia Capital Fund said it would invest $800 million and Dubai-based VyCapital committed $700 million. - Musk has also reduced the amount he is borrowing against his Tesla stock in a margin loan from $12.5 billion to $6.25 billion.Editing by Lauren Silva Laughlin and Sharon LamOpinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.Sign up to our investor newsletter to get the latest news and trends in global financial markets.
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