Earlier this month, tech billionaire Elon Musk decided to pursue a $44 billion acquisition of Twitter. Despite all the drama that has occurred, Sequoia Capital and Binance said they would continue to support the Twitter acquisition deal.
Sequoia Capital and Binance set to back Musk’s Twitter takeover deal
In April, Sequoia Capital had committed a total of $800 million. Unknown sources familiar with the matter said the venture capital giant is ready to continue that support without change.
Binance also said it is prepared to continue its support without any change in the capital allocation. The crypto-currency exchange said it will continue its $500 million contribution. Earlier in May, Binance CEO Changpeng Zhao said:
“We hope to play a role in bringing social media and Web3 together and expanding the use and adoption of crypto and blockchain technology.”
Reiterating this, the Binance spokesperson said:
“We are still committed and nothing new to share at this time.”
Musk’s flip-flop with Twitter acquisition
Earlier in April, Elon Musk was willing to pay a total of $44 billion in the overall acquisition of Twitter at $54 per share. Later, Musk and his team decided to back out of the deal citing a large number of spam and undisclosed bot accounts on Twitter. Musk also asked Twitter to provide him with full details about the bot account.
But earlier this month, Musk made another about-face by filing a notice with the Delaware Court of Chancery on Oct. 3, stating that he was ready to proceed with the “closing of the transaction contemplated by the April 25, 2022 merger agreement.“.
Musk, however, wanted to settle out of court, but Twitter refused, citing its past experience. In the past, Sequoia Capital has backed several of Elon Musk’s companies. The venture capital giant was an early investor in Musk’s first venture, PayPal. Earlier in April, Sequoia also contributed $675 million in a funding round for the “boring company” by Musk.
Similarly, Binance has made some strategic investments recently. The crypto-currency exchange made a $200 million strategic investment in Forbes. Binance has stated that its goal is to improve financial understanding of blockchain and crypto.