Elon Musk’s social media platform, X, formerly known as Twitter, is reportedly in discussions with investors to raise funds at a valuation of $44 billion. According to a Bloomberg report citing sources familiar with the matter, this valuation aligns with the price Musk paid to acquire the company in 2022.
The potential funding round represents a notable turnaround for X, which faced user and advertiser departures following Musk’s takeover and subsequent revamp of the platform. While discussions are ongoing, sources indicate that details of the financing round may still change, or the company could ultimately decide to abandon the fundraising efforts.
This marks the first known investment round for X since Musk took the company private in 2022. The move comes after a period of financial struggles for the platform. In December 2023, Fidelity Investments reduced the estimated value of its stake in X by about 70% from the original $44 billion acquisition price.
However, recent developments suggest a shift in sentiment toward the company’s financial stability. Last week, Morgan Stanley successfully sold $3 billion worth of X’s debt at face value, without any discount. This is a significant improvement compared to earlier attempts, where potential buyers were hesitant. The strong investor demand signals growing confidence in X’s financial prospects.
Elon Musk’s other ventures have also seen major gains in recent months. Tesla Inc., his electric vehicle company, has experienced a stock surge of over 40% since the election of former U.S. President Donald Trump, with whom Musk maintains a close relationship.
Additionally, SpaceX, Musk’s aerospace giant, recently achieved an astounding $350 billion valuation, further solidifying its position as the world’s most valuable tech startup. Musk’s artificial intelligence company, xAI, is also reportedly seeking funding at a valuation of approximately $75 billion, demonstrating growing investor interest in his AI initiatives.
X currently holds a $6 billion stake in xAI, further intertwining the financial interests of Musk’s enterprises. Some investors speculate that Musk’s close ties with Trump could positively impact X’s future, particularly in regulatory and policy matters.
Notable investors who supported Musk’s acquisition of X in 2022 include Andreessen Horowitz, Sequoia Capital, and the Qatar Investment Authority. Their continued backing could be crucial in securing funds for the current round.
As X navigates its financial recovery, the outcome of the fundraising discussions could determine its long-term viability and position in the competitive social media landscape.
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