Binance commits $500 million to buyout Elon Musk
Crypto exchange Binance has pledged $500 million to back Elon Musk’s $44 billion takeover bid. Musk also received $800 million from Sequoia Capital, $316 million from Fidelity and $400 million from a16z. These details were revealed via a Schedule 13D form, which must be filed with the SEC when an entity acquires more than 5% of a company’s stock.
In response to the announcement, Binance CEO Changpeng Zhao tweeted, “A small contribution to the cause,” implying that he believes in the changes Musk wants to make to Twitter. Binance also made a $200 million strategic investment in Forbes earlier this year, so this isn’t the first time it has taken a stake in a media company.
A small contribution to the cause. https://t.co/xD9XZxOWfL
— CZ 🔶 Binance (@cz_binance) May 5, 2022
Elon Musk agreed to buy Twitter for $54.20 per share in April. The transaction, which will transform Twitter into a private company, is expected to close this year, subject to shareholder and regulatory approvals.
Musk said he plans to open up Twitter’s algorithm to make it a more inclusive space for free speech. He also said he would try to fight spam and bot accounts.