Elon Musk’s social media platform, X, is reportedly seeking new investment at a valuation of $44 billion, the same amount Musk paid for the company in 2022.
Discussions are ongoing, and while no final decision has been made, the company could either proceed with the fundraising or abandon the plans altogether.
The aim for fresh capital follows a challenging financial period for X. In December 2023, Fidelity Investments reduced the estimated value of its stake in the company by about 70%, casting doubt on the platform’s financial standing.
However, recent developments show a shift in investor interest. Banks such as Morgan Stanley, Bank of America, and Barclays have been selling off X-related debt, with Morgan Stanley successfully offloading $3 billion worth of X’s debt at face value.
Investor confidence in X appears to be improving, partly due to a resurgence of major advertisers, including Amazon and Apple. Their return to the platform could enable revenue boost after previous advertiser withdrawals.
Beyond X, Musk’s other business companies have been thriving. Tesla’s shares have seen a sharp increase, rising over 40% in recent months, and SpaceX has reached a $350 billion valuation.
Meanwhile, Musk’s artificial intelligence startup, xAI, is in the process of securing funding at a valuation of around $75 billion. X itself holds a $6 billion stake in xAI, further linking Musk’s various enterprises.
Political perspectives believe Musk’s relationship with former U.S. President Donald Trump could influence regulatory policies in ways that benefit X and Musk’s other companies.
Again, early backers of Musk’s acquisition of X, such as Andreessen Horowitz, Sequoia Capital, and the Qatar Investment Authority, remain essential players whose continued support could be indispensable in any new funding round that could boost the platform’s valuation.
