Binance commits $500M to co-invest in Twitter with Elon Musk
Major crypto exchange Binance has participated in Elon Musk’s $44 billion acquisition of Twitter, according to data filed with the United States Securities and Exchange Commission.
On May 5, Musk filed an amended general statement of the acquisition, announcing that Twitter received an aggregate of about $7.2 billion in new financing commitments in connection with the merger agreement, subject to the conditions in co-investor equity commitment letters.
According to the document, Binance is one of 18 co-investors in the acquisition alongside major crypto industry players like Sequoia Capital Fund and Fidelity Management and Research Company.
Having invested $500 million, Binance is the fourth biggest contributor, following Lawrence J. Ellison Revocable Trust, which invested $1 billion. Sequoia Capital and VyCapital donated $800 million and 700 million, respectively.
Binance CEO Changpeng Zhao took to Twitter subsequently after the filing became public, describing the company’s investment as a “small contribution to the cause.”
A small contribution to the cause. https://t.co/xD9XZxOWfL
— CZ Binance (@cz_binance) May 5, 2022
Each listed equity investor mentioned in the document has committed to contribute to or immediately prior to the closing of the acquisition. “Equity Investors have retained an option to satisfy such Equity Investor’s equity commitment with shares of common stock held by such equity investor, valued at $54.20 per share,” the document reads.
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The billionaire CEO and founder of Tesla, Musk officially announced the acquisition of Twitter on April 25, with the $44 billion worth transaction expected close in 2022, subject to the approval of Twitter stockholders as well as regulators. He previously said that one of his top priorities for Twitter would be to remove “spam and scam bots and the bot armies,” including those related to crypto.
As previously reported by Cointelegraph, Musk was pushing Binance to address some issues on its platform last year, causing a small Twitter battle with the Binance CEO. Musk specifically brought up a problem related to some stuck Dogecoin (DOGE) withdrawals on Binance, asking Zhao to explain the issue.