Who are the financial forces behind Elon Musk’s purchase of Twitter? Here is a comprehensive list of his generous backers.
Elon musk bought Twitter on Oct 27, 2022. After so much drama, he completed his $44bn (£38.1bn) takeover of Twitter. After completing the deal to buy Twitter, Mr. Musk tweeted, “the bird is freed,” and later said, “let the good times roll.” However, his takeover of Twitter has been marked by chaos and unrest thus far.
After cutting down the company’s 7,500 workforces by half and scaring away advertisers, he has propelled the organization into an even deeper financial abyss. Parag Agrawal, the head of the organization, and several other top-level executives were apparently terminated.
Unfortunately, his attempts to generate revenue via payment for extra features and verification have yet to make any significant progress. The results of his recent informal poll confirmed that he should resign from the position of CEO.
Sources close to the matter, who wished to remain anonymous so as not to be subjected to retribution, disclosed that some of his investors are becoming anxious due to his actions.
There are so many investors backing Musk to take over Twitter and make it a social media platform of free speech.
Here is the Top 5 Twitter Shareholders List of 2022.
Let’s take a closer look at who were the investors behind the musk twitter deal and why they decided to invest.
These are New Twitter Investors Behind Musk Takeover of Twitter
These are the Foreign Investors
Prince Alwaleed bin Talal al Saud
His Estimated Contribution: $2 Billion
In May, the Saudi prince granted Musk’s request to convert his Twitter shares worth nearly $2 billion into a stake in the company when he made it private. Just a month before, he had gone head-to-head with Musk about the company’s value, but at some point tweeted that Musk would be an “outstanding leader for Twitter.”
The prince has had a successful track record in investing in Apple, Amazon, and eBay. However, his most recent venture into the Silicon Valley landscape raised eyebrows among Washington insiders. President Biden and various legislators have urged officials to analyze the role played by Saudi Arabia and other nations in the Twitter transaction.
The Qatar Investment Authority
Estimated Contribution: $375 Million
This month, tech mogul Elon Musk was seen at the World Cup finale with Mansoor Bin Ebrahim Al-Mahmoud, CEO of Qatar Investment Authority.
The $450 billion sovereign wealth fund, renowned for its investments in companies such as Barclays, Credit Suisse, and Volkswagen, has an impressive international presence. It has also joined Elon Musk’s investors with a significant contribution of $375 million to the agreement. By using its revenues from the export of liquefied natural gas, Qatar can fuel a fund that powers its diplomatic and political endeavors.
Estimated Contribution: $500 million
Recently, Binance, a large cryptocurrency exchange, caused an uproar when it decided to break off its negotiations with FTX – a competing platform co-founded by Sam Bankman-Fried, which has since fallen apart. Shortly after Musk announced his intention to buy Twitter, Binance eagerly reached out and offered $500 million to support the purchase.
The exchange’s executives firmly agree with Musk’s aim to reduce the number of bots on the platform.
SO What these foreign investors get:
Investors who pour in $250 million or more will receive exclusive access to confidential company data. However, offering this privilege to foreign investors is creating concerns among Biden and U.S. officials alike. It is especially noteworthy to consider if those entities will be granted access to users’ personal data on Twitter.
This is because many of them have connections with governments, many of which are known for repressing individuals who express their opinions online and on platforms like Twitter.
Estimated Contribution: $400 Million
This venture capital firm, based in Silicon Valley, has funded some of the most successful startups today such as Airbnb, Lyft and Coinbase. In court filings, it was revealed that Marc Andreessen, co-founder of the company in question, had privately messaged Elon Musk about a potential Twitter deal. He wrote, If you’re considering equity partners, my growth fund is ready to invest $250 [million], with absolutely no additional effort needed.
Estimated Contribution: $800 Million
For years, Roelof Botha has been a long-time friend of Elon Musk and even hired him to work on what would later be known as PayPal. This relationship with Musk is part of the reason why Sequoia Capital chose Twitter as one of its investments before DoorDash, Zoom, or 23andMe.
The most influential players in Silicon Valley have now become heavily invested in Twitter, and they will expect a significant return on their investments. With such clout behind them, it is clear that these investors can easily wield immense power to ensure the success of their ventures.
Larry Ellison, the co-founder, and chairman of the software company Oracle, estimated Contribution, is $1 Billion.
Jack Dorsey, former co-founder and chief executive of Twitter, also invested an estimated $1 Billion.