Binance CEO Changpeng Zhao (CZ) has reiterated his commitment to supporting Elon Musk’s takeover of Twitter.
Earlier, Binance had pledged to support Elon Musk’s new $44 billion bid for Twitter by committing $500 million. According to CZ, the acquisition of Twitter offered a real chance to facilitate social networks’ entry into Web3. In addition, CZ noted that the stock market’s support was contingent on Musk seeing the deal through.
” If he’s out, we’re out “, CZ noted after an interview in June. In July, Elon Musk attempted to withdraw from the deal, claiming that Twitter had not provided accurate information. However, Musk was unable to follow through with his decision to withdraw due to mounting legal pressure. In fact, the deal must be completed by Friday or be sent to court.
It is not at all surprising, then, that CZ was asked about Binance’s position on its initial commitment. When asked at the conference Future Initiative in Riyadh, Saudi Arabia, whether he would stand by his decision, CZ replied, “I think he would.“
Meanwhile, it wasn’t just Binance that made monetary commitments. Sequoia Capital Fundhas pledged $800 million while Fidelity Management and Research has pledged $316 million. In comparison, a16z has committed $400 million.
Washington may try to stop Twitter takeover
Despite the court’s stance on Elon Musk’s Twitter deal, there are concerns that President Biden’s administration could block the buyout. According to a Bloomberg article, administration officials believe a national security review of Elon Musk’s companies is necessary.
While there are concerns that Elon Musk is supporting Russia’s position in the war on Ukraine, the administration is also concerned about the source of his funding. For example, although he claims that Binance is not a Chinese company, CZ itself is Chinese, which worries the US authorities. Elon Musk is also supported by Prince Alwaleed bin Talal of Saudi Arabia.
That said, Elon Musk has made it known that he would stop supporting the satellite deployment of Internet service in Ukraine, as it cost him about $80 million. Elon Musk also threatened to lay off 75% of Twitter’s workforce.
Following CZ’s announcement, Twitter’s shares rose. The stock was trading at $52.78 at the time of this writing.