“We invested, because we believe in Ev and Jack’s vision to connect the world and we believe in Elon’s brilliance to finally make it what it was meant to be. While Twitter has great promise as a public square, it suffers from a myriad of difficult issues ranging from bots to abuse to censorship. Being a public company solely reliant on an advertising business model exacerbates all of these,” he added.
Saudi Arabia’s prince Al Waleed bin Talal Al Saud, who had previously opposed the Twitter buyout, has also committed to providing nearly 35 million shares in Twitter to retain a stake following the company’s takeover by Musk, the disclosure said.
Musk said he is engaging with certain additional existing shareholders, including Twitter co-founder and former chief executive Jack Dorsey, to give them the option to rollover their shares.
As a result of the new investment, Musk said the margin loan of $12.5 billion he had received from Morgan Stanley and other banks has been cut to $6.25 billion. He also increased his total equity commitment to $27.25 billion.
Changpeng Zhao, founder and chief executive of Binance, said the crypto exchange hopes 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.”