The Current Proprietors of X, Previously Known as Twitter
In late 2022, the social media giant now known as X, previously Twitter, underwent a significant transformation. Billionaire entrepreneur Elon Musk, the CEO of Tesla (TSLA 0.19%), privatized the company for a staggering $44 billion. However, dig a little deeper, and you'll discover that Musk isn't the lone wolf in this digital space.
Social Media: The Modern Landscape
Social media platforms such as X enable users to create, share, and engage with content globally. In the case of X, we're diving into its ownership structure, key governance details, and ways to potentially invest in this now-private entity.
Who's the Boss Here?
Until October 2022, X, then known as Twitter, was publicly traded on the New York Stock Exchange under the ticker TWTR. Elon Musk, a vocal critic of Twitter's speech restrictions, seized the opportunity to privatize the company, completing the deal by October.
Legally speaking, Musk established X Holdings as the parent company, which in turn owns X Corp. Musk also registered X.AI, focusing on artificial intelligence. This intricate structure could be due to X.AI's AI-centric focus.
How Musk Stole the Show
Musk's journey to owning X kicked off in early 2022, when he cobbled together a considerable stake in the company as a shareholder. By April, he claimed the top spot, laying the groundwork for a $44 billion bid to acquire the firm. Rejections and legal disputes ensued, but in October, Musk finally sealed the deal.
Talking Dollars
To fund the acquisition, Musk sold about $15 billion of his Tesla shares, secured $13 billion in financing from various banks, and garnered capital from a host of outside investors. Major investors in X include Saudi prince Alwaleed bin Talal's Kingdom Holding Company, Oracle co-founder Larry Ellison, cryptocurrency exchange Binance, Twitter co-founder Jack Dorsey, and Fidelity Investments, among others.
Current X Ownership Structure
Following Musk's acquisition, X introduced an employee stock ownership plan and granted restricted stock units, making the "owners" of X quite numerous. Musk's stake is the largest, but a wealth of investors encompass kingpins like Talal, Ellison, Dorsey, and numerous others.
Final Thoughts
While Elon Musk is the primary figurehead, X is a shared entity with diverse ownership. As a private company, X's road to future exploits awaits. For now, indirect investment opportunities present themselves through platforms like the Ark Venture Fund.
After Elon Musk privatized X for $44 billion in late 2022, he explored ways to potentially invest in the now-private entity. Finance played a crucial role in Musk's acquisition, as he sold Tesla shares, secured financing, and received investments from various sources.
