The list of investors involved in Elon Musk’s $44 billion acquisition of Twitter, now named X, has been disclosed nearly two years after the deal was finalized. This revelation provides a clearer picture of the financial backers behind Musk’s October 2022 purchase. The disclosure comes from an unsealed document resulting from a lawsuit filed by former employees seeking arbitration fee payments.
Almost 100 stakeholders are named, including significant figures like Bill Ackman, Sean Combs, and Prince Alwaleed bin Talal. Venture capital firms such as Andreessen Horowitz and Sequoia Capital, which also backed Musk’s A.I. startup xAI, are listed. Other notable investors are Joe Lonsdale’s 8VC, Gigafund, and Scott Nolan from Founders Fund. Previously, Binance had publicized its $500 million investment, and Cathie Wood’s participation via ARK Venture Fund was also known.
Detailed Investor List
The newly unsealed document names investors like Bill Ackman’s Pershing Square Foundation and Oracle CEO Larry Ellison, a former Tesla (NASDAQ:TSLA) board member. Prince Alwaleed bin Talal, who also supports xAI, and rapper Sean Combs through Sean Combs Capital are included. The document was made public following a motion by the Reports Committee for Freedom of the Press, supporting independent journalist Jacob Silverman.
Previously, it was known that Musk’s financial backing included Binance and Cathie Wood’s ARK Venture Fund. However, the detailed list now provides a broader understanding of the diverse investment sources, including multiple venture capital firms and private investors with connections to Musk’s other ventures like The Boring Company and SpaceX.
Impact on Advertisers
X has struggled to retain advertisers since Musk’s acquisition, with a notable decrease in ad revenue. Fidelity (NASDAQ:FDBC) Investments disclosed a 72 percent drop in its stake value in X, reflecting broader financial challenges. Despite new features like paid verification, the platform still depends heavily on ad revenue, which declined by 24 percent in the first half of 2024 compared to the same period in 2023.
The platform’s revenue challenges were exacerbated by an ad boycott, leading X to sue the Global Alliance for Responsible Media. The group has since ceased operations, citing a lack of resources to continue fighting Musk’s legal claims. This legal battle highlights ongoing tensions between X and the advertising industry.
The unveiling of X’s investor list and its financial struggles provide valuable insights into the complexities of Elon Musk’s acquisition. While the diverse group of investors underscores confidence in Musk’s vision, the platform’s reliance on ad revenue remains a critical vulnerability. The legal dispute with the Global Alliance for Responsible Media also exemplifies the challenges X faces in rebuilding advertiser trust. These dynamics will likely influence the platform’s future strategies and success in the competitive social media landscape.
