en.wikipedia.org/wiki/X_Corp.
2 corrections found
In April 2022, filings submitted to the Securities and Exchange Commission (SEC) revealed Musk had formed three corporate entities in Delaware, one was X Corp, another was X Holdings and another was X Holdings Corp.
The SEC filings for Musk’s Twitter bid did not name the entities X Corp, X Holdings, and X Holdings Corp. They were X Holdings I, Inc., X Holdings II, Inc., and X Holdings III, LLC.
Full reasoning
The article misstates the names of the three acquisition entities Musk used in 2022.
SEC filings for the Twitter deal identify:
- X Holdings I, Inc. as the parent in the merger agreement.
- X Holdings II, Inc. as the acquisition subsidiary that would merge with Twitter.
- X Holdings III, LLC as the entity tied to the margin-loan financing.
Those are the actual legal names in the filings. The claim in the post substitutes different names — X Corp, X Holdings, and X Holdings Corp — which do not match the SEC documents for the 2022 Twitter acquisition structure.
2 sources
- Twitter, Inc. Quarterly Report (Form 10-Q) for quarter ended March 31, 2022
Agreement and Plan of Merger, dated April 25, 2022, by and among Twitter, Inc., X Holdings I, Inc., X Holdings II, Inc., and, solely for the purposes of certain sections, Elon R. Musk.
- Twitter, Inc. Current Report (Form 8-K), April 25, 2022
the commitment parties party thereto committed to provide to X Holdings III, LLC, a Delaware limited liability company wholly owned by Mr. Musk, at the effective time of the Merger, margin loan financing
This was later increased to a value of $27 billion by July, and up to about $28.5 billion by the end of August.
Those valuation figures are wrong. Fidelity’s July 2023 mark implied roughly $18.5 billion, and later reporting put late-August 2023 around $16.9 billion—not $27 billion and $28.5 billion.
Full reasoning
This sentence appears to misread Fidelity’s percentage-based writeups as dollar valuations.
What the reporting actually says:
- End of May 2023: Fidelity valued Twitter/X at about $15 billion.
- Month ending June 30, 2023: Axios reported Fidelity still held the shares at a 61.28% discount to Musk’s $44 billion purchase price. That implies a valuation of about $17.0 billion, not $27 billion.
- Month ending July 31, 2023: Axios reported Fidelity held the shares at a 58% discount, which implies about $18.5 billion (42% of $44 billion), not $27 billion.
- Late August 2023: Forbes, citing Fidelity’s stake valuation, reported X was worth about $16.9 billion in late August — again, nowhere near $28.5 billion.
- The later "28.5" figure appears to come from a different Fidelity disclosure: by the end of November 2023, Axios said Fidelity believed X was worth 71.5% less than the purchase price, meaning about 28.5% of $44 billion (roughly $12.5 billion), not $28.5 billion.
So the July and August dollar amounts in the post are contradicted by the reported Fidelity marks.
4 sources
- Twitter worth third of what Elon Musk paid, Fidelity says
the company is now worth about $15 billion, or 33% of the October purchase price
- Elon Musk's X is gaining value, Fidelity says
Fidelity increased the valuation by 8% during the month ending July 31 ... The investment giant is holding the shares at a 58% discount
- X Says It’s Worth Less Than Half What Elon Musk Paid
This latest valuation is somewhat higher than the $16.9 billion that Fidelity—which has a small stake in X—valued the company at in late August.
- Elon Musk's X gets another valuation cut from Fidelity
Fidelity believes that X is worth 71.5% less than at the time of purchase, according to a new disclosure that runs through the end of November 2023