Musk calls on new investors to contribute $7 billion to Twitter deal
The projected numbers included Twitter’s annual revenue exceeding $13 billion and its earnings before interest, taxes, depreciation and amortization — a measure of profitability — potentially reaching $6 billion by 2025, two people who said looked at the numbers.
Investors had a few days to make a decision. Some balked at the speed and lack of detail on governance issues, including voting rights, rights to information and the makeup of Twitter’s board under Mr. Musk, a source said. nobody. The $44 billion Mr. Musk pays for Twitter was also a sticking point, given the company’s inconsistent earnings, the person said.
Morgan Stanley declined to comment.
Some investors did not wait for Mr. Musk to contact them. Binance contacted him directly, said a person familiar with the situation, and is investing $500 million. The cryptocurrency exchange saw an opportunity to use blockchain, a database of digital information, to help fight bots, which are automated accounts that spam people, the person said.
“A small contribution to the cause”, Changpeng Zhao, founder of Binance, mentioned on Twitter about investing. (The company also recently invested in Forbes, aiming to bring cryptocurrency into a traditional media company.)
Sequoia Capital, a Silicon Valley venture capital firm, invested $800 million and said it had “been at the forefront of Elon’s business and technical prowess” for two decades.
“We, like him, see the opportunity to drive meaningful product innovation that will help unlock the full potential of Twitter as a global platform that connects the world,” a Sequoia spokeswoman said.
Brookfield, a property management company, invested $250 million through its technology growth investment arm. The company used Tesla Technology to add solar panels to some of its properties and recently invested in SpaceX. Brookfield declined to comment.