Tesla Inc. Chief Executive Elon Musk said he has received letters from investors committing more than $7 billion in fresh financing to boost the equity part of his offer to buy Twitter Inc.
Twitter shares rose 2.22% in premarket trading.
Mr. Musk has received letters committing about $7.14 billion from a group of 19 investors, including Sequoia Capital, Oracle Corp. co-founder Larry Ellison and VyCapital, he disclosed in a regulatory filing.
Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud of Saudi Arabia has also committed to commit nearly 35 million shares in Twitter to retain an investment in the company following Mr. Musk's takeover, the disclosure said.
Mr. Musk said he is in talks to bring more current Twitter shareholders, including co-founder Jack Dorsey, into the company after the buyout.
As a result of the new financing commitments, Mr. Musk said the $12.5 billion margin loan he had received to buy Twitter has been reduced to $6.25 billion and the takeover will be financed now by $27.25 billion in equity and cash.