Investors who supported Elon Musk’s $44-billion purchase of Twitter (now rebranded as X) in 2022 are facing significant financial losses as the platform's value has plummeted under his leadership, according to a report by The Washington Post. The original backers, including Saudi Prince Alwaleed bin Talal, Twitter co-founder Jack Dorsey, and several high-profile Silicon Valley venture capitalists, have seen their investments drastically devalue.
Musk and his group of investors have collectively lost over $24 billion in paper value since the acquisition. The social media company’s valuation has dropped by 72 per cent since Musk took control in October 2022.
Who Faced The Most Losses?
An analysis by The Washington Post highlights that the eight largest initial investments alone have depreciated by approximately $5 billion. Key investors such as Jack Dorsey, Larry Ellison, and Sequoia Capital are among those facing steep declines in the worth of their stakes.
Prince Alwaleed bin Talal, X's second-largest investor after Musk, has publicly maintained that his investment remains valued at $1.9 billion, despite external assessments suggesting otherwise. He attributes his confidence to the company's ventures into artificial intelligence through Musk’s AI startup, xAI, and emphasises a long-term focus on boosting the platform’s revenue.
The acquisition has come under regulatory scrutiny, with the US Securities and Exchange Commission (SEC) investigating the circumstances surrounding Musk’s takeover for potential fraud. Meanwhile, the platform has struggled with a significant advertiser exodus, driven by Musk's relaxed approach to content moderation, which has led to regulatory clashes, including a temporary suspension in Brazil.
Major Losses Of Top X Investors
- Elon Musk: -$24.12 billion
- Prince Alwaleed bin Talal (and Kingdom Holding Co.): -$1.36 billion
- Jack Dorsey: -$720 million
- Larry Ellison: -$720 million
- Sequoia Capital: -$576 million
- Vy Capital: -$504 million
- Binance: -$360 million
- Andreessen Horowitz: -$288 million
- Qatar Investment Authority: -$270 million
The company’s financial woes are compounded by an increasingly hostile regulatory environment and a sceptical advertising market, raising concerns about X’s future under Musk’s direction.