Binance and Sequoia Capital Still Backing Elon Musk’s Twitter Bid

Twitter icon  •  Published 1년 전  •  Nikolas Sargeant

Binance confirmed to Cointelegraph that it intends to continue to support Musk as part of its push for the mainstream adoption of Web3 and cryptocurrency

The Twitter buyout saga led by Tesla CEO Elon Musk has seen its ups and downs, with the latest episode this month seeing the deal back on again. Binance confirmed to Cointelegraph that it intends to continue to support Musk as part of its push for the mainstream adoption of Web3 and cryptocurrency.  

The takeover bid of Twitter, one of the leading social media platforms, has been slated to be in the region of $44 billion. 

Musk Continues To Garner Support

California-based venture capital firm Sequoia Capital already committed $800 million to the deal in April before the fiasco surrounding Twitter bots ensued. The lack of belief in the validity of the numbers Twitter executives had quoted led to the Tesla CEO getting cold feet and pulling out of the deal.

According to an unnamed source close to the deal, the firm will continue to offer the capital previously shown to support the agreement now that the deal is back on the table. Similarly to Sequoia, Binance also stated that it would keep supporting the move with a contribution of $500 million. 

A company representative told Cointelegraph, "we’re still committed and nothing new to share at this moment,” while referring to Binance’s CEO Changpeng Zhao’s comments from a Twitter post in May this year: “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.”

A Rocky Road For Musk’s Takeover

At the start of October, Musk’s abrupt decision to pursue the deal again was reported in the media, with the wealthiest man in the world filing a notice with the Delaware Chancery Court on October 3rd.

The filing indicated that he is now ready to proceed with the “closing of the transaction contemplated by the April 25, 2022 Merger Agreement.” The buyout will be for the initially agreed upon $54.20 per share for a total of $44 billion. 

Musk has a history with the investment firm Sequoia, with the firm has been an early-stage investor in what would eventually become PayPay, as well as leading a $675 million funding round for the Boring Company back in April this year. 

While Binance has shown continued support for the Twitter takeover, placing $500 million on the table. Bloomberg reported last week that Binance had spent $325 on 67 projects this year alone, with the Changpeng Zhao stating the company may invest $1 billion in total this year. 

Author

Nikolas Sargeant

Nik is a content and public relations specialist with an ever-growing interest in Crypto. He has been published on several leading Crypto and blockchain based news sites. He is currently based in Spain, but hails from the Pacific Northwest in the US.