Crypto exchange Binance is committed to stick to its $500 million support for Elon Musk’s bid to acquire Twitter at $54.20 per share. Changpeng Zhao (CZ), the CEO of Binance, believes Musk will buy out the microblogging platform.
When the deal was announced in April, CZ promised to back the bid with other crypto-adjacent financial companies like Sequoia Capital and Fidelity Management. The Tesla CEO had shared private messages with crypto billionaires discussing how they might make Twitter more decentralized.
CZ believes this was a chance for them to help bridge social media and news into Web3. But he clarified that his support would only remain so long as Musk actually followed through on the deal. Binance said if Musk is off, Binance is off too. CZ hopes to be able to play a role in bringing social media and Web3 together and broadening the use and adoption of crypto and blockchain technology.
It should be noted that Musk nearly backed out of the Twitter agreement as the social media platform failed to provide him with sufficient information about the prevalence of spam bots on its platform. However, after a few months of back and forth and mounting legal pressure, Musk finally agreed to the original terms of the deal.
But this has caught the government’s eye, in particular the Biden administration. The White House is discussing whether or not to subject some of the billionaire’s ventures to national security reviews. It includes Musk’s Twitter buyout as its being supported by multiple foreign investors including Saudi Arabia’s Prince Alwaleed bin Talal.