Roelof Botha, head of venture capital firm Sequoia Capital, is still backing the $800 million funding for Elon Musk’s Twitter (NYSE:TWTR) takeover. Botha has solid conviction in Musk’s business prowess and believes he will be able to turn around the company successfully.
At a recent WSJ Tech Live conference, Botha said, “Elon has succeeded in many different industries… He’s an incredible first-principles thinker.” Sequoia initially agreed to finance the transaction after doing a detailed analysis of Twitter’s financials and speaking with several employees.
Moreover, Botha also discussed the possibilities of monetizing the social media platform beyond advertising revenue to include subscriptions and payment integration. Botha believes Musk is capable of improving spam issues, and account verification, as well as strategizing a profitable turnaround for Twitter.
Botha and Musk share a long history of camaraderie dating back to when Musk founded PayPal Holdings (PYPL). Sequoia Capital has also financed Musk’s other start-ups, including rocket company SpaceX and underground tunnel-construction venture, The Boring Co.
Musk is expected to complete the $44 billion takeover by this Friday, as informed to co-investors. As per a Bloomberg report, even banks that are financing the debt portion have finalized the paperwork and are in the process of signing the documents.
With the deal nearing completion, TWTR stock has gained 27.1% in the past month. After being under pressure due to the legal battle with Musk, TWTR stock is finally hovering close to the agreed-upon takeover price of $54.20 per share.
