Elon Musk bought Twitter Inc. last week for $44 billion with the help of Wall Street bank loans and shareholders who agreed to give up their stake in the social network in exchange for a stake in the new private company. That means Twitter, whose shares were delisted last week after nearly a decade as a public company, now has a new lineup of top investors, reports Bloomberg.
Regulatory filings show that Saudi Prince Alwaleed bin Talal transferred nearly 35 million Twitter shares through Kingdom Holding Co. for about $1.9 billion at a sale price of $54.20 per share. This made him the second largest investor in the new parent company. Alwaleed was quick to endorse Musk’s intention to buy Twitter, saying in May that Musk would be a “great leader” for the social media company.
Twitter co-founder and former CEO Jack Dorsey sold just over 18 million shares, or about 2.4% of the publicly traded company, worth about $978 million at the merger price. That gave him shares in Elon Musk’s X Holdings I Inc., which controls Twitter. After Musk first agreed to buy Twitter in April, Dorsey lamented that the company was owned by Wall Street and said taking it private was the right first step.
Qatar Investment Authority – a subsidiary of Qatar’s sovereign wealth fund contributed $375 million in exchange for shares in Musk’s holding company.
Twitter’s stake has fallen about 40% since Musk made his offer in April, according to the Bloomberg Billionaires Index, based on the social network’s share index.