How Binance and Elon Musk Teamed Up for the Twitter Purchase

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by Giorgi Kostiuk

2 years ago

Backed by investors like Binance, Elon Musk acquired Twitter in 2022 for $44 billion. This article explores the deal's process and aftermath.

Elon's Path to Owning Twitter

Elon Musk's journey to acquiring Twitter began in April 2022 when he bought a 9.1% stake, becoming its largest shareholder. He soon offered to buy the entire company for $44 billion, aiming to turn Twitter into a free speech platform. Despite legal challenges, the deal was finalized on October 27, 2022, at the initial price, amidst concerns of overvaluation.

Chaos at Twitter Post-Acquisition

Following the acquisition, Elon Musk implemented drastic changes at Twitter, such as laying off half the staff and altering content policies. These moves increased hate speech and misinformation, leading advertisers to flee and causing a sharp decline in ad revenue. The company's valuation plummeted to $15 billion, burdened by significant debt obligations.

Who Bankrolled Elon's Venture?

The $44 billion deal was funded through Musk's wealth, bank loans, and investments from key figures. Notable backers included Oracle's Larry Ellison and Prince Alwaleed bin Talal. Musk also sold billions in Tesla stock and secured $12.5 billion in loans. Despite the debt load, Musk aims to transform X into an 'everything app' like WeChat, though the path to execution is fraught with challenges.

Elon Musk's Twitter acquisition was a complex process with unpredictable outcomes. While Musk seeks to turn X into a super app, the journey is laden with significant challenges.

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