Changpeng “CZ” Zhao, the founder and former CEO of Binance, has reminded the public of his role in Elon Musk’s $44 billion purchase of Twitter, now rebranded as X.
Sharing a screenshot of an article highlighting Binance’s $500 million contribution, Zhao confidently captioned it, “Happy to have contributed to the cause.” Musk acknowledged the statement with a brief “Thanks!”
The $44 Billion Twitter Deal and Its Challenges
Elon Musk’s acquisition of Twitter began in April 2022 when he became the company’s largest shareholder after acquiring a 9.1% stake. Shortly after, Musk made an unsolicited offer to buy Twitter for $54.20 per share, valuing the company at $44 billion. He intended to promote free speech and transform Twitter into a more open platform.
However, the acquisition faced significant hurdles. Musk later attempted to withdraw from the deal, citing concerns over spam accounts. Twitter’s board opposed his decision and pursued legal action to enforce the agreement. Following months of legal battles, Musk finalized the purchase on October 27, 2022. While some celebrated the deal as a bold move, others criticized it as an overpayment. At the time, many analysts estimated Twitter’s value to be closer to $30 billion.
CZ and other backers of Elon Musk’s vision
Elon Musk did not fund the $44 billion purchase on his own. The acquisition was backed by a mix of Musk’s personal wealth, loans, and investments from high-profile individuals and firms. Binance contributed $500 million, a move Zhao has now highlighted publicly. Key supporters included Oracle co-founder Larry Ellison, Saudi Prince Alwaleed bin Talal, and former Twitter CEO Jack Dorsey.
Venture capital firms such as Andreessen Horowitz, Sequoia Capital, and Gigafund joined the deal. Musk additionally sold billions in Tesla stock, which caused concerns among Tesla investors, and secured approximately $12.5 billion in loans from major banks. This complex financial structure left X with significant debt, including over $1 billion in annual interest payments. Despite the financial strain, Musk has remained committed to transforming X into an “everything app,” similar to WeChat in China.
A mixed aftermath for X
Since Musk’s takeover, X has undergone drastic changes, including mass layoffs and shifts in content moderation policies. Supporters praised Musk’s efforts as necessary restructuring, while critics pointed to increased hate speech and misinformation. This shift caused many advertisers to leave the platform, leading to a significant decline in ad revenue.
Financial challenges have continued. By late 2024, X’s valuation had fallen to roughly $15 billion, marking a steep decline from Musk’s purchase price. User engagement has shown mixed results, with some metrics indicating resilience while others point to a decline due to policy changes and controversial content. Musk has openly acknowledged the struggles, referring to the acquisition as “mega pain” but necessary to shape the platform’s future. For now, the future of X remains uncertain, but the role of key investors like CZ remains an integral part of its controversial journey.