(Photo : JOEL SAGET/AFP via Getty Images)
A federal judge has ordered the disclosure of shareholders involved in Elon Musk's $44 billion acquisition of Twitter, now rebranded as X.
This order allows the public to see who invested in the deal, which closed in October 2022. The newly released information includes prominent figures like Sean "Diddy" Combs, former Twitter CEO Jack Dorsey, and venture capitalists and other investors.
Court Orders Disclosure of Shareholders in Elon Musk's X Acquisition
According to USA Today, the court document reveals nearly 100 shareholders tied to X Holdings Corp., though some may represent various funds managed by single entities. Key investors include venture capital firm Andreessen Horowitz, Saudi Prince Alwaleed bin Talal al Saud, and 8VC, a firm co-founded by Joe Lonsdale.
Italian company UnipolSai S.P.A. is also listed among the shareholders. X had previously kept this information confidential, and the company did not respond to requests for comment.
This disclosure follows a lawsuit from former Twitter employees claiming that Musk violated arbitration agreements related to compensation fees. Jacob Silverman, an independent technology journalist, and the Reporters Committee for Freedom of the Press (RCFP) pushed for transparency, leading US District Judge Susan Illston to approve unsealing the shareholder list in July 2024.
Also Read: Meta Exec Who Worked for Elon Musk Says No AI, No Competitive Edge for Businesses
X Faces Financial, Operational Challenges
Katie Townsend from the RCFP praised the court's decision, emphasizing the public's right to know who owns influential companies like X. Silverman also stressed the need for transparency given X's role in shaping global public discourse.
Since Musk's takeover, X has faced financial and operational challenges. The company recently experienced a significant drop in revenue, with a nearly 40% decrease reported for the first half of 2023. According to The Washington Post, Fidelity revealed a major reduction in the valuation of its stake in X, from $20 million to $5.6 million.
Musk has introduced new subscription options and an AI chatbot while reducing staff and altering content guidelines, which may have contributed to an increase in objectionable content.
X is also involved in legal disputes with the World Federation of Advertisers over alleged impacts on its revenue.
Despite these issues, Musk continues to leverage the platform's role in the upcoming presidential election, claiming record-high app downloads. The future of X's financial stability and its influence on public discourse remains uncertain as of August 2024.
Related Article: Microchip Technology Hit by Security Breach, Business Operations Affected
