The projected numbers included Twitter’s annual revenue exceeding $13 billion and its earnings before interest, taxes, depreciation and amortization — a measure of profitability — potentially hitting $6 billion by 2025, two individuals who viewed the numbers said.
Investors got a couple of days to make a choice. Some balked on the speed and lack of detail on governance issues, including voting rights, information rights and the makeup of Twitter’s board of directors under Mr. Musk’s stewardship, one person said. The $44 billion that Mr. Musk is paying for Twitter was also a sticking point, given the corporate’s inconsistent profits, the person said.
Morgan Stanley declined to comment.
Some investors didn’t wait for Mr. Musk to achieve out to them. Binance contacted him directly, an individual aware of the situation said, and is investing $500 million. The cryptocurrency exchange saw a possibility to make use of the blockchain, a database for digital information, to assist tackle bots, that are automated accounts that spam people, the person said.
“A small contribution to the cause,” Changpeng Zhao, Binance’s founder, said on Twitter in regards to the investment. (The corporate also recently invested in Forbes, aiming to integrate cryptocurrency with a conventional media company.)
Sequoia Capital, a Silicon Valley enterprise firm, invested $800 million and said it had “had a front-row seat to Elon’s business and technical prowess” for 20 years.
“We see, as he does, the chance to drive meaningful product innovation that may help unlock Twitter’s full potential as a world platform that connects the world,” a spokeswoman for Sequoia said.
Brookfield, an actual estate management firm, invested $250 million through its technology growth investing arm. The firm has used Tesla technology so as to add solar panels to a few of its properties and recently invested in SpaceX. Brookfield declined to comment.