Unsealing Reveals Influential Backers Behind Elon Musk’s Twitter Acquisition

In a recent development, a federal judge has ordered the unsealing of a previously redacted shareholder list for the parent company of Elon Musk’s X Corp. This revelation sheds light on the influential entities and individuals who backed Musk’s $44 billion takeover of the social media giant formerly known as Twitter. The unsealing came as a result of a motion filed by freelance journalist Jacob Silverman, who sought to intervene in an unrelated lawsuit against Musk by former Twitter employees. Silverman’s efforts were supported by attorneys from the nonprofit Reporters Committee for Freedom of the Press, who argued that the public had a strong interest in transparency regarding the ownership of a major social media platform like X Corp.

The motion emphasized that both the First Amendment and common law presumptions of public access require the disclosure of information such as X Corp.’s shareholder list to ensure judicial integrity and subject the platform’s operations to public scrutiny. However, X Corp.’s attorneys opposed the unsealing, arguing that the court lacked jurisdiction to consider Silverman’s request and that the shareholder names were not relevant to the merits of the case. They also claimed that unsealing the list would violate the privacy rights of the individuals and entities involved.

Despite X Corp.’s arguments, U.S. District Judge Susan Illston sided with Silverman and the Reporters Committee, stating that the shareholder list contained no scandalous information or trade secrets and could be revealed in the public’s interest in understanding the judicial process. The judge criticized X Corp.’s position, noting that they presented little more than conjecture to support their claim that the investor list should remain hidden.

As a result of the judge’s order, X Corp. must file an unredacted version of the corporate disclosure statement, including the investor list, on the public docket by September 4. However, it is worth noting that an unredacted version of the statement, featuring the investor list, has already been entered into court records as a substitution for the original statement filed on June 9, 2023.

The shareholder list contains several notable names, including Jack Dorsey, the founder and former CEO of Twitter, rapper Sean “Diddy” Combs, and Saudi Prince Alwaleed bin Talal bin Abdulaziz Al Saud. It also features major corporate players from Silicon Valley, such as Andreessen Horowitz, Gigafund, and Sequoia.

X Corp. has not yet responded to requests for comment on the matter. However, the Reporters Committee for Freedom of the Press has praised the judge’s decision, stating that it vindicates the public’s interest in knowing who owns X. Katie Townsend, the Reporters Committee’s deputy executive director and legal director, highlighted that corporate ownership information of this nature is routinely disclosed in civil litigation and sees no reason why it should have been sealed in this case.

Jacob Silverman, the freelance journalist who initiated the motion, expressed his satisfaction with the ruling in a blog post. He emphasized the importance of knowing who owns a platform of public discourse and raised concerns about the majority shareholder’s potential business dealings with censorious dictatorships.

The corporate disclosure statement, initially filed in a lawsuit brought by former Twitter employees alleging non-payment of arbitration-related fees by Musk after he acquired the company, has now become a focal point for uncovering the backers behind Musk’s Twitter acquisition. This unsealing not only allows for greater transparency in understanding the ownership dynamics of X Corp., but also highlights the significance of public access to information in shaping the operations and accountability of major social media platforms.