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Elon Musk created a trio of holding companies dubbed “X Holdings” as part of his bid to acquire Twitter. This gives him the potential to bring all of his businesses under one parent company, as he mentioned earlier.
According to the April 20, 2022 filing, new companies were created in Delaware, each with a variant of the name “X Holdings.” In particular, we are talking about X Holdings II, Inc., which is listed in the document as “Purchaser” and X Holdings I, Inc., which is named “Parent.”
“Reference is made to a possible third-party tender offer by X Holdings II, Inc., a Delaware corporation (the “Purchaser”), and a wholly owned subsidiary of X Holdings I, Inc., a Delaware corporation (“Parent” ), to purchase all outstanding shares of common stock, par value $0.000005 per share (the “Common Stock”), of Twitter, Inc., a Delaware corporation (the “Company”), together with the associated rights issued pursuant to the rights agreement, dated as of April 15, 2022, by and between the Company and Computershare Trust Company, N.A., as rights agent, that are issued and outstanding (the “Rights” and, together with the Common Stock, the “Shares”), upon the terms and subject to the conditions set forth in the Offer to Purchase, related Letter of Transmittal, and other tender offer materials provided by or on behalf of Parent and the Purchaser to each holder of Shares (which, collectively, as amended or supplemented , constitute the “Offer”), together with the proposed second-step mer ger contemplated thereby (the “Merger”). Each term used and not otherwise defined herein shall have the meaning assigned to such term in the Offer.”
This letter agreement was delivered by Elon Musk (including his assigns, the “Equity Investor”) to Parent and the Purchaser in connection with the Offer and the Merger.
According to documents filed with the US Securities and Exchange Commission (SEC), Musk and his investor partners plan to put money into one of the organizations to fund the purchase of Twitter shares in a tender offer, while the subsidiary will merge with the social media firm.
At this point, it is unclear if the holding companies will have anything to do with Musk's current companies: Tesla, SpaceX, Boring Co., and Neuralink. However, the topic of uniting all his companies under one umbrella has already been raised by him a few times in the past. Musk talked about creating a parent back in 2012, and in 2020 said that naming it “X,” which was suggested by one of Tesla's investors, was “a good idea.” Musk also owns the X.com domain. He owned it when it served as home to his financial services startup, which was eventually merged with another company called Confinity in a deal that would be rebranded as PayPal in 2001.
Nevertheless, speaking at the TED 2022 conference, Musk said that it would be difficult to create a holding company that united all of his companies. This is due to the fact that Tesla is traded on the stock exchange, and the fact that the investor bases of Tesla, SpaceX, Boring Co., and Neuralink are completely different.
© 2022, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.