Binance put $500 million into the Musk-Twitter transaction because it thought the businessman could transform the social media site a "free speech" hub
Elon Musk was able to close his bid to acquire Twitter (TWTR) with a $500 million investment from Binance, the largest cryptocurrency exchange in the world. The newly completed $44 billion acquisition has officially been finalized. The investment was made because CEO Changpeng Zhao believes the social media platform will be free of numerous issues, including spam comments and phony accounts.
Following an amended 13D filing that revealed the cryptocurrency brokerage had provided Musk with an equity commitment letter for $500 million, the transaction was first brought up in May. CZ tweeted "a small contribution to the cause" in response.
"We're excited to be able to help Elon realize a new vision for Twitter. We aim to play a role in bringing social media and Web3 together in order to broaden the use and adoption of crypto and blockchain technology," CZ said in a statement to TheStreet.
Twitter Should Gain From the New System
As TMC previously reported, Twitter was finally purchased by Elon Musk for $44 billion. The money for the project was raised from a number of places. The majority of the money was paid by Musk via the sale of his Tesla stock. And various associations raised the remainder. Musk sealed the acquisition on October 27. But we are aware of the value of working too hard. The acquisition's history is rather dramatic. Elon Musk has frequently spoken candidly about his conflict with Twitter. He has questioned how Twitter handles free speech and the dissemination of propaganda. The story officially began when Musk shared his ideas for developing a new social media network in March 2022. At the same time, some users recommended that Musk purchase Twitter to improve the platform!
CZ recently said in an interview that Twitter will improve significantly and give cryptocurrencies "a seat at the table when it comes to free speech." Although running such a company is not simple, Elon Musk has proven he can handle the pressure, the executive continued.
TMC recently reported Elon Musk, the CEO of Tesla who finalized the USD 44 billion purchase of Twitter last week and taken control of the microblogging site, was revealed to have disbanded the board and been appointed the sole director of the business on Monday, October 31. According to an SEC filing from October 27th, Bret Taylor, Parag Agrawal, Omid Kordestani, David Rosenblatt, Martha Lane Fox, Patrick Pichette, Egon Durban, Fei-Fei Li, and Mimi Alemayehou were all fired from Twitter's board as part of the "consummation" of Musk's takeover of the company. These nine individuals will no longer serve on the board, according to the corporation.
Since gaining control of Twitter, Elon Musk wants to start charging users for the coveted "blue check" that denotes verified status. According to unnamed sources and internal memos, Musk intends to raise the monthly fee for Twitter Blue from $5 to $20 and expand the list of features. Users who have been verified have 90 days to join the site or risk having their blue checkmark removed.
Not to mention that once the anticipated Twitter transaction was completed, Twitter CEO Parag Agrawal and finance chief Ned Segal left the company's San Francisco offices, and Tesla CEO Elon Musk fired the company's top executives. The regulations governing content filtering have changed, according to Musk in a tweet.
Because of his advocacy for the first-ever memecoin Dogecoin, some people believed that the token would be crucial to Twitter's future development. After all, two of Musk's most well-known businesses, Tesla and Space X, take DOGE as payment.
"What should you make of this? Sure maybe it's just an investment…or maybe there is some synergy. If you remember, Elon and his brother had their text messages released where they talked about a blockchain-based social media platform that would be "like Twitter." Musk's brother even called the idea the "doge social media" in the texts later on. This is no coincidence because Elon has previously tweeted that Twitter should have a subscription model that users can pay with Dogecoin," Mac said.
Elon Musk closed his bid to acquire Twitter with a $500 million investment from Binance, the largest cryptocurrency exchange in the world.
The acquisition of Twitter by Elon Musk was completed at a total value of $44 billion.
Binance invested in Twitter's acquisition because its CEO, Changpeng Zhao (CZ), believes that the social media platform will benefit from being free of issues like spam comments and fake accounts.
Elon Musk funded the majority of the Twitter acquisition through the sale of his Tesla stock.
Elon Musk plans to raise the monthly fee for Twitter Blue, the subscription service that provides verified status (blue checkmark), from $5 to $20 and expand the list of features.
CZ believes that Twitter's acquisition will give cryptocurrencies "a seat at the table when it comes to free speech" and significantly improve the platform.
Following Elon Musk's takeover, the individuals fired from Twitter's board included Bret Taylor, Parag Agrawal, Omid Kordestani, David Rosenblatt, Martha Lane Fox, Patrick Pichette, Egon Durban, Fei-Fei Li, and Mimi Alemayehou.
After the acquisition, Elon Musk disbanded the board and became the sole director of Twitter. He also intends to charge users for the "blue check" verified status and expand the features of Twitter Blue.
Some believed that Elon Musk's advocacy for Dogecoin could play a role in Twitter's future development, especially since he had discussed blockchain-based social media platforms and suggested using Dogecoin for subscription payments.
There was speculation that Elon Musk's previous discussions about a blockchain-based social media platform and using Dogecoin for payments were not coincidental, suggesting a potential synergy between his ideas and Twitter's future.