Scoop: Ari Emanuel’s Endeavor invested in Twitter 2.0
Endeavor, the sports and entertainment company led by Ari Emanuel, invested in Twitter in mid-January, two sources tell Axios.
Why it matters: Endeavor is the first outside investor known to have bought into Twitter 2.0, subsequent to Elon Musk closing his $44 billion takeover and implementing a rash of layoffs and other changes.
Of note: The investment came after Musk had already proven that his brash leadership style would lead to headaches for Twitter.
Details: The investment wasn’t material to Endeavor, one source noted, but made sense for the firm strategically.
- Endeavor’s clients include some of the world’s largest media, entertainment and sports stars, and the company routinely invests in tech and media platforms that will support its growth.
- As of January, dozens of media companies and sports leagues had inked sponsorship deals with Twitter for the first half of this year, Axios reported, showing how much those industries still rely on Twitter.
Catch up quick: Musk began approaching investors in December to help raise money to pay off Twitter’s debt.
- At the time, Axios’ Dan Primack reported that Musk, via his family office, was offering to sell additional equity to investors at the same $44 billion valuation that he paid for Twitter.
Between the lines: Fidelity cut its carrying value of Twitter by 56% during the first month of Elon Musk’s ownership, Axios reported in December.
- Musk warned engineers and product staff in December that a Twitter bankruptcy “isn’t out of the question.”
- It was reported in December that the company was struggling to hit its advertising targets, amid trepidations from marketers and broader macro economic trends impacting the ad market.
- In November, Musk had to pause its abrupt, new verification program following user complaints.
Be smart: Musk and Emanuel have long had a close personal relationship.