X shareholder list exposed

According to Decrypt, X (formerly known as Twitter) has released a previously undisclosed shareholder list, revealing the roles played by multiple cryptocurrency focused companies in Musk's $44 billion acquisition of this social media platform in 2022.

In response to a motion proposed by the Committee on Freedom of Journalists in July, a federal judge ordered X to disclose its shareholder list on Tuesday of this week. The list includes nearly 100 entities, including Binance Capital Management and several renowned venture capital firms focused on investing in AI and cryptocurrency. These companies include Andreessen Horowitz (a16z), ARK Venture, and 8VC.

In addition to the kitchen, this list also includes nearly 30 entities related to Fidelity Investments. Although Binance has been previously disclosed as an investor in X, most of the company's other shareholders have not publicly disclosed it to the public.

Musk's purchase is too expensive, and the bank is trapped

Musk acquired X for $44 billion in October 2022, marking one of the largest technology acquisitions in history. According to Reuters, Musk has promised $4.65 billion in equity and debt financing for the deal and its transaction fees, while banks such as Morgan Stanley and Bank of America have pledged $13 billion in debt financing. However, according to the latest financial data analysis, the performance of this transaction did not meet the expectations of its supporters.

Although X is a private company, it is not required to report its revenue to the public. But the company claimed its value to be around $19 billion in the fourth quarter of 2023, while Fidelity analysts suggested in January 2024 that its value could be only $12.5 billion.

According to a report by The Wall Street Journal on Tuesday, Musk's $44 billion Twitter acquisition has become the worst merger financing deal for banks since the 2008-2009 financial crisis. Although these banks still receive interest, so loans may not necessarily be losses, they are essentially a heavy burden on the bank's balance sheet, and it is difficult for banks to sell these debts without incurring losses.

According to a report by The Wall Street Journal, the merger and acquisition teams of banks including Barclays have been reduced by 40% due to this failed financing case.