QIA unit, Dubai’s Vy Capital join consortium to help Elon Musk buy Twitter
Qatar Holding, a subsidiary of the gas-rich country’s sovereign wealth fund, and Dubai-based Vy Capital are among the investors who are helping billionaire Elon Musk acquire social media platform Twitter.
Qatar Holding, which is owned by the Qatar Investment Authority, is contributing $375 million while Vy Capital is pitching in with $700 million, according to a filing on the US Securities and Exchange Commission.
This will help Musk pay for his $44 billion buyout, which will see Twitter go private and delist from the US stock exchanges.
Vy Capital and Qatar Holding are part of a consortium of 18 investors that Musk has brought on board to help complete his ambitious takeover. The other investors include cryptocurrency platform Binance, Sequoia Capital, Brookfield, Fidelity Management, Honeycomb Asset Management, Key Wealth Advisors, AM Management & Consulting, AH Capital and Management, and Larry Ellison, the chief executive officer of Oracle.
Together, these 18 investors will contribute $7.14 billion out of the total money needed to buy out Twitter’s current shareholders and take the company private.
Interestingly, Saudi Arabian billionaire investor and Twitter shareholder prince Alwaleed Bin Talal, who was initially against the buyout, also agreed to roll his stake worth $1.89 billion into the deal.
The top two contributors among the 18 investors are Ellison, who is pitching in with $1 billion, and Sequoia, which is coughing up $800 million, with Vy coming in third.
The deal comes just weeks after Vy Capital and Sequoia Capital led a $675-million investment into Musk’s The Boring Co in a Series C round that valued the tunnelling company at $5.7 billion.
Vy and Sequoia were joined by Valor Equity Partners, Founders Fund, BVC, Craft Ventures and DFJ Growth.
DFJ is also part of the consortium of 18 investors and has pitched in with $100 million, the SEC filings show.
If the deal to acquire Twitter does not go through, Musk will have to cough up $1 billion in breakup fees.