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Sequoia Capital and Binance will proceed with their initial commitment of funding $800 million and $500 million into Musk’s Twitter deal.
Earlier this month tech billionaire Elon Musk decided to proceed further with the $4 billion acquisition of Twitter. Despite all the drama that has happened, Sequoia Capital and Binance said that they will continue to extend their support in the Twitter acquisition deal.
Sequoia Capital and Binance Ready to Support Musk’s Twitter Deal
In April, Sequoia Capital had committed a total of $800 million. Unknown sources familiar with the matter said that the VC giant is willing to continue this support with no changes.
Binance also stated that it is willing to continue its support without any changes to the capital allocation. The crypto exchange said that it will carry on with its contribution of $500 million. Earlier in May, Binance CEO Changpeng Zhao stated:
“We hope 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”.
Reiterating it, the Binance spokesperson said:
“We’re still committed and nothing new to share at this moment”.
Musk’s U-turn with Twitter Acquisition
Earlier in April, Elon Musk was ready to pay a total of $44 billion in the overall acquisition of Twitter at $54 per share. Later, Musk and his team decided to pull back from the deal citing a large number of undisclosed spam and bot accounts on Twitter. Musk also asked Twitter to provide him with all details of the bot account.
But earlier this month, Musk pulled another abrupt U-turn by filing a notice with the Delaware Chancery Court on Oct. 3. In the filing, Musk stated that he is ready to proceed with the “closing of the transaction contemplated by the April 25, 2022 Merger Agreement”.
Musk, however, wanted to make an out-of-court settlement but Twitter has refused to cite their past experience. In the past, Sequoia Capital has been supporting several of Elon Musk’s businesses. The VC giant was an early-stage investor in Musk’s first company PayPal. Earlier in April, Sequoia also poured $675 million in a funding round for Musk’s boring company.
Similarly, Binance has been making some strategic investments recently. The crypto exchange made a $200 million strategic investment in Forbes. Binance said that its goal is to improve the financial understanding of blockchain and crypto.