Binance And Sequoia Once Again Back On Elon Musk’s Twitter Deal
- Binance and Sequoia Capital are once again back to collaborate with Elon Musk on the Twitter purchase deal and the two will commit millions to the same.
- While the world’s biggest exchange will commit close to $500 million to the acquision deal, the American venture fund will commit around $800 million to the same.
- The deal will take place at the earlier agreed value of $54.20 per share which amounts to a total of $44 billion to be paid by the world’s richest man.
Binance, the world’s biggest cryptocurrency exchange, along with Sequoia Capital, an American venture capital firm, are once again backing the deal to purchase Twitter, a popular social media platform, initiated by Elon Musk, the richest person on the planet and the CEO of Tesla. The takeover amount is still the same as in April, i.e., $44 billion.
Sequoia Capital, a Menlo Park, California-based firm, has already committed $800 million to the deal back in April when the Twitter acquisition deal was initiated. However, Musk got cold feet soon after as he claimed that the social media platform has not been honest with him in terms of explaining the number of bots currently operating on it.
On the other hand, Binance, the leading crypto exchange, told in a statement that the exchange is still committed to the deal with Musk and Sequoia. Additionally, the firm will spend around $500 million in the acquisition deal and a representative said that ““we’re still committed and nothing new to share at this moment.”
“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,”said Changpeng ”CZ” Zhao, the CEO of Binance in April.
As October began, it was clear as crystal that Elon Musk has taken a U-turn once again after retracing its steps from the April deal in July. Following Musk’s withdrawal from the deal, Twitter filed a lawsuit against the Time’s Person of The Year 2021 stating that the CEO of SpaceX needs to pay $44 billion for going back on his words.
Additionally, if the deal goes through without any issues, Elon Musk will acquire Twitter for a price of $54.20 per share for a total of $44 billion in collaboration with Binance and Sequoia. Interestingly, Sequoia Capital is known for collaborating and backing Musk’s various deals. This is because Sequoia was one of the initial investors in the firm which eventually became PayPal, a leading payments company.
Another crucial factor to note here is that the biggest rival of Binance, crypto exchange FTX‘s CEO Sam Bankman-Fried, was “potentially interested” in the deal as well. Bankman-Fried’s advisor Will MacAskill texted Musk regarding the crypto billionaire’s interest in the Twitter buyout deal.
“Hey — I saw your poll on Twitter about Twitter and free speech,” MacAskill wrote on March 29. “I’m not sure if this is what’s on your mind, but my collaborator Sam Bankman-Fried has for a while been potentially interested in purchasing it and then making it better for the world. If you want to talk with him about a possible joint effort in that direction.”
As far as we know, the deal did not go through between Musk and Bankman-Fried.