Sean ‘Diddy’ Combs Invests in Elon Musk’s Twitter/X Takeover

Following a federal lawsuit over Elon Musk’s alleged failure to pay arbitration fees after his acquisition of Twitter/X, the company was compelled to disclose its list of shareholders. The list is noteworthy, featuring entities connected to Sean “Diddy” Combs, Saudi Arabia’s Prince Alwaleed bin Talal al Saud, billionaire hedge fund manager Bill Ackman, and Oracle co-founder Larry Ellison.

According to The Hollywood Reporter, the lawsuit’s outcome unveiled the financiers behind Musk’s $44 billion purchase of Twitter/X in October 2023. The company initially resisted naming its investors, arguing that “[n]o publicly held corporation owns 10% or more.” However, a journalist and the Reporters Committee for Freedom of the Press contended that transparency was crucial given Twitter/X’s influence on global discourse. They argued that understanding the financial motivations behind the platform could reveal potential biases in its operations.

The court sided with this argument and mandated that Twitter/X release a non-redacted list of its investors. Despite this, the platform attempted to move the case to the Northern District of California federal court, which has its own rules regarding the disclosure of financial stakeholders in lawsuits.

In the ruling, the federal judge stated, “Here, respondents have presented little more than conjecture in support of their position. The disclosure statement does not contain any scandalous information or trade secrets. On the record before it, the court is unable to discern a factual basis for sealing the disclosure.”

Jacob Silverman, the journalist collaborating with the Reporters Committee for Freedom of the Press, emphasized the importance of public knowledge in this matter. Speaking to Fortune, Silverman remarked, “Simply, it’s about transparency, disclosure, and free speech—on behalf of the public and X’s users. It’s important that the public knows who owns the platform, who might influence its governance, and who Musk owes.”

The Washington Post further detailed the list of stakeholders, identifying a fund linked to Combs among the investors in Musk’s Twitter/X bid. The publication noted that many of the funds listed are controlled by the same firms or individuals. Other prominent investors include venture capital firm Andreessen Horowitz, Twitter founder and former CEO Jack Dorsey, and 8VC, a venture capital firm started by Joe Lonsdale, co-founder of the intelligence contractor and data analysis platform, Palantir.

Rolling Stone and New York Times reporters Kate Conger and Ryan Mac have shared insights from their forthcoming book, Character Limit: How Elon Musk Destroyed Twitter. The book recounts an incident where Musk tried to reassure Datavio Samuels, CEO of Revolt, that an increase in racist content wouldn’t drive away Black users. Musk mentioned his connection with Combs, saying, “I don’t know if you know this, but Puff [one of Combs’ former stage names] is an investor in Twitter. You know, he’s a good friend of mine. We text a lot.”

Financial services firm Fidelity Investments provides a clear illustration of the risks involved for those who invested in Musk’s Twitter/X acquisition. Fidelity has slashed its initial $20 million valuation to around $5.6 million, representing a 71.5% loss.

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Source: The Hollywood Reporter, Fortune, Washington Post, Rolling Stone