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Elon Musk’s social media company, X (formerly Twitter), is in talks to raise funds at a $44 billion valuation, the same price Musk paid when he acquired it in 2022. Sources familiar with the matter say discussions are ongoing, and while details could change, this marks X’s first investment round since going private.
The potential funding signals a remarkable shift in fortunes for X. Following Musk’s takeover, many advertisers and users left, causing a sharp decline in revenue. In December, before these fundraising talks began, Fidelity Investments had already marked down its Twitter stake by about 70% from the acquisition price.
Meanwhile, X’s debt has seen a positive revaluation. Morgan Stanley recently finalized a $3 billion X debt sale at full face value, attracting strong investor demand. This marks a stark contrast from previous efforts to offload the debt, which initially faced hesitation from buyers.
X’s improving financial outlook is largely attributed to a rise in advertising, particularly around the US election. The company’s earnings and revenue for 2024, while adjusted, suggest stabilization. Musk’s growing influence in finance and the stock market—especially his ties to Donald Trump—has also shifted investor sentiment, with some seeing potential advantages for X.
In addition to X, Musk’s artificial intelligence venture, xAI, is also in fundraising mode. The AI startup is seeking investment that could push its valuation to around $75 billion. X itself holds a $6 billion stake in xAI, further strengthening its position in the finance and tech sectors.
Key investors in Musk’s Twitter acquisition include Andreessen Horowitz, Sequoia Capital, and the Qatar Investment Authority. With X’s finances showing signs of recovery, all eyes are on the stock market as investors assess Musk’s growing empire.
