- Elon Musk is making Twitter private with the help of investors.
- Binance, the cryptocurrency exchange, has invested $500 million.
- Binance’s CEO called the sum a “blank check” and said he had not discussed a business plan with Musk.
Binance, the world’s largest cryptocurrency exchange, is investing $500 million as part of Elon Musk’s deal to make Twitter private.
This sum is just a blank check, CEO Changpeng Zhao told the Financial Times on Thursday. Zhao quickly decided to spend half a billion dollars on the deal without even hearing a business plan from Musk, he said.
“We of our friends have heard that [Musk] was looking for third-party investors, and are we interested?” he told the British newspaper. “We immediately answered in the affirmative. He had no plan for Twitter. There’s no, like, a business plan. So it wasn’t that kind of discussion.”
Zhao told the Financial Times that Binance would back Musk, but he chooses to use the funds and is particularly excited about the potential for a cryptocurrency tie-up with Twitter.
“It’s more of a blank check”, Zhao Told the exit. “After the investment… Elon will figure out what he wants to do, and we’ll support him.”
While Musk voiced a few options for changes on Twitter, including billing government and business users, elimination of bot accountsand release content moderation (Musk is called a “free speech absolutist”), there has been little overall strategy presented publicly.
Although Musk said he doesn’t care about the economics of Twitter during an interview at a TED talk in April, Bloomberg reported that he presented various strategies for consolidating the finances of the social network during meetings with bankers. According to The New York TimesMusk told potential investors they could double or triple their money and he could grow Twitter’s user base to 500 million in no time.
18 backers join Musk in his takeover bid, including Oracle co-founder Larry Ellison, venture capital firm Sequoia Capital and Fidelity, which have collectively invested some $7.1 billion, regulatory filings revealed Thursday.
Musk has previously said he secured the $44 billion needed to buy Twitter through loans from seven banks, a loan against his Tesla stake and his own money. The new investors will allow Musk to borrow less from banks, Musk told the Securities and Exchange Commission.