Twitter subpoenas Andreessen Horowitz, Musk’s Billion-dollar Playout financing

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Twitter subpoenas Andreessen Horowitz, Musk’s Billion-dollar Playout financing

Bloomberg-Treasury Inc. subpoenaed records from equity investors, including a unit of Brookfield Asset Management Inc., and sought information on Marc Andreessen and a host of venture capital figures, over Elon Musk s financing of the $44 billion buyout it sued him to complete.

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Brookfield's new venture capital arm put $250 million into Musk's $7.1 billion equity raise for the deal in May. The lawyers of Twitter want to know about the terms of the investment and the billionaire's efforts to syndicate the package, according to court filings Tuesday in Delaware.

According to the filings, Twitter demanded information from more than a dozen firms, including DFJ Growth IV Partners, Valor Equity Partners, Fidelity Management Research and Andreessen s AH Capital Management.

The Washington Post reported on Monday that subpoenas had gone out seeking information on those investors, some of whom were not previously known to have been involved in the deal.

Bloomberg LP, which owns Bloomberg News, has invested in Andreessen Horowitz.

As the agreement between Musk and Twitter was coming together, Calacanis had canvassed his network of wealthy investors to get backing for the deal. We are now collecting interest to invest in Twitter, with Elon Musk's plan to take it private, he wrote in a May 11 message seen by Bloomberg with the subject of Twitter interest. He asked investors to get back to him that night. It is not clear how much interest he got.

The pretrial request for information seeks a wide range of communications and documents about Musk's bid to acquire Twitter for $54.20 a share, which he is trying to undo over claims that the company didn't provide him with information about spam and bot accounts. A series of subpoenas about their involvement have been received by Twitter, which has hit a list of banks involved in Musk's financing package.

Some decried the effort as too broad, with Lonsdale calling it a giant harassing fishing expedition and complaining of a notice.

Many investors know Musk from his days at PayPal, which he ran until his ouster in 2000. Rabois and Sacks were PayPal executives, and Lonsdale once worked as a PayPal intern. Jurvetson, who has been friends with Musk for years, holds a board seat at SpaceX and previously held a seat at Tesla Inc., both of which are run by Musk.

Calacanis is also in Musk's orbit and hosts a podcast called All-In, with Sacks and Palihapitiya among its hosts. At a recent All-In conference in Miami, Musk dialed in to speak and spent some time casting doubt on Twitter's numbers.

Delaware Chancery Court Judge Kathaleen St. J. McCormick is scheduled for a five-day trial starting on October 17 in Wilmington.

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