Investors in Elon Musk's X Deal Named in Court

In a recent court ruling, a federal judge in San Francisco ordered the unsealing of a list of nearly 100 investors who participated in Elon Musk's $44 billion acquisition of X, formerly known as Twitter, in October 2022. The disclosure follows a motion filed by technology journalist Jacob Silverman, represented by the Reporters Committee for Freedom of the Press, emphasizing the public's right to know the ownership of the social media platform. The list includes prominent venture capitalists, a Saudi royal, and entities linked to Sean ‘Diddy’ Combs. Musk financed the acquisition with $13 billion in loans from major banks, including Morgan Stanley and Bank of America. However, an analysis revealed that these loans have become the worst merger-finance deal for lenders since the 2008-2009 recession, primarily due to the banks' inability to sell the debt. Additionally, X's value has plummeted by over 70% since the acquisition, with Fidelity marking down its shares significantly. Despite knowing the inflated price Musk paid, banks were drawn to the deal due to Musk's status as the world's wealthiest person at the time. The unsealed list provides the first comprehensive view of X's co-owners, which includes a Saudi conglomerate, cryptocurrency firm Binance, and billionaire Bill Ackman. Some investors retained their shares from Twitter's public days, while others joined Musk's ownership group post-acquisition. Notably, Jack Dorsey, Twitter's co-founder, remains a stakeholder. Meanwhile, Combs faces multiple legal challenges, including a recent sex trafficking lawsuit.