Elon Musk has acquired the Twitter business (renamed to X) for a value of $44 billion. However, Musk did not purchase X/Twitter alone, but had several co-investors alongside him. Following the acquisition, some investment firms reported a decrease in the value of X/Twitter by a whopping 72% from the purchase price.
Nevertheless, according to the annual report of Kingdom Holding, an investment company based in Saudi Arabia and an investor in X/Twitter, stated that “one social media company outside the stock market” has recently traded shares, bringing the business value back close to the price at which Kingdom Holding invested.
The annual report does not disclose the names of the companies or individuals involved in this transaction, but sources close to the matter have revealed that the company in question is X/Twitter itself. The transaction was executed by Elon Musk, who repurchased shares worth $150 million from some shareholders, maintaining the business value at $44 billion. Musk has expressed his intention to increase his shareholding in the future.
As of 2023, Elon Musk holds a 74% stake in X/Twitter, with his investment coming from personal capital and loans from financial institutions.
Source: Bloomberg
TLDR: Elon Musk, with co-investors, acquires Twitter rebranded as X for $44 billion. Despite initial value loss, strategic share repurchase and new investment reaffirm Musk’s commitment to the platform’s growth.
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